Virgin Galactic Holdings nyse Spce Stock Tumbles As Wells Fargo Maintains Bearish Outlook

Virgin Galactic Holdings (NYSE: SPCE) Stock Tumbles as Wells Fargo Maintains Bearish Outlook

Virgin Galactic Holdings (NYSE: SPCE) stock plummeted over 7% in intraday trading as Wells Fargo reiterated its cautious outlook.

Wells Fargo analysts have maintained a bearish outlook on Virgin Galactic Holdings (SPCE) shares, affirming in a recent research note that it’s “still a waiting game.”

The bank has upheld its Underweight rating on SPCE shares while reducing the target price to $0.75 from $1. They emphasized that the Delta Class EIS is progressing as planned, with peak cash burn still anticipated in the latter half of this year.

According to Wells Fargo, the anticipated timeline for the new mothership’s entry into service has been delayed by one year, now expected in 2028.

In their note, Wells Fargo stated,

“SPCE expects to move through the existing backlog in 2026/27 timeframes, and sees ticket sales restarting in 2025.”

Additionally, the analysts highlighted ongoing cash burn expectations, noting that it is still projected to reach its peak later this year due to increased expenditures on tooling and parts for spacecraft construction. They also mentioned that the next major investments for the spaceport include additional hangar and training facilities.

In summary, Wells Fargo remains skeptical about the short-term prospects for SPCE, despite the company’s plans to reopen ticket sales in 2025. The bank perceives a lack of positive catalysts for the stock in the near term, maintaining its cautious stance on Virgin Galactic Holdings as investors await further developments in the company’s strategic initiatives and operational progress.

Virgin Galactic Holdings (NYSE: SPCE) Stock Movement

SPCE stock plunged 7.53% to close at $0.9524 on Friday. Its value increased by 0.46% this week. Trading activity has witnessed 30,248,056 (30.24 million) shares changing hands, well above the average daily volume of 15.29 million.