Virgin Galactic Holdings (SPCE – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen maintained a Buy rating on the stock and has a $2.50 price target.
Oliver Chen has given his Buy rating due to a combination of factors including Virgin Galactic Holdings’ (SPCE) recent success in commercial flights and strong future revenue projections. SPCE has demonstrated its capability by completing six commercial flights within six months, carrying 19 paying customers, and generating meaningful revenue. The company’s clear strategy to pause commercial flights to focus on building the next generation of VSS-Delta spaceships, which are critical for scaling operations and profit potential, underpins Chen’s positive outlook. The financial guidance provided by the company indicates a robust liquidity position that Chen believes will adequately support the construction of two new VSS-Delta spaceships, essential for weekly commercial service by mid-FY26 and full-scale operations by FY28.
Furthermore, Chen’s optimistic view is reinforced by the expected revenue of $1.1-1.4 billion per year once full-scale operations are reached, coupled with high-margin returns and a relatively short payback period for each VSS-Delta spaceship. The analyst also sees Virgin Galactic’s scaling plans outside the U.S. and potential partnerships with governments as strategic moves that could lead to significant financial benefits. Competitive pricing for SPCE’s space travel experience, as compared to rivals, and the untapped potential of the market are additional factors that bolster Chen’s confidence in the long-term profitability of Virgin Galactic’s spaceport economic engine.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Levi Strauss & Co, MYT Netherlands, and Coty. According to TipRanks, Chen has an average return of 5.7% and a 52.72% success rate on recommended stocks.
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Virgin Galactic Holdings (SPCE) Company Description:
Virgin Galactic Holdings Inc is a United States-based vertically-integrated aerospace company pioneering human spaceflight for private individuals & researchers, and it also manufactures advanced air and space vehicles. Using its technologies, it is developing a spaceflight system designed to offer its customers a unique, multi-day, and transformative experience. This culminates in a spaceflight that includes views of Earth from space and several minutes of weightlessness that will launch from Spaceport America, New Mexico.
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