Spaceflight company, Virgin Galactic Holdings (NYSE:SPCE) dropped in pre-market trading after top-rated Morgan Stanley analyst Kristine Liwag downgraded the stock to a Sell from Hold and lowered the price target to $1.75 from $4.
The analyst explained that one of the reasons for the downgrade was the company’s decision to hit the pause button on revenue-generating spaceflights, as it attempts to conserve cash while redoubling its effort to produce Delta spaceships.
While analyst Liwag is confident about the company’s long-term potential, she sees limited opportunities for its stock price to go up. The analyst pointed out that with the company not planning any space flights from the middle of next year to 2026, Liwag sees a “catalyst-lull period on the horizon.”
What is the Forecast for SPCE Stock?
Overall, SPCE stock has not performed well this year, plunging more than 35% year-to-date. Even Wall Street analysts are bearish about the stock, with a Moderate Sell consensus rating based on one Buy, two Holds, and four Sells. The average SPCE price target of $2.08 implies a downside potential of 2.4% at current levels.
