© Reuters. Analysts Slam Virgin Galactic (SPCE) on Yet Another Flights Delay
Virgin Galactic (NYSE:) announced last week it is rescheduling the launch of its commercial space flight service to the first quarter of 2023 due to supply chain and labor challenges.
“We look forward to returning to space in the fourth quarter and launching commercial service in the first quarter of next year,” said the company’s CEO Michael Colglazier said.
Virgin Galactic initially planned to launch the commercial space flight service in the fourth quarter of last year.
Virgin Galactic a net loss of $93.1 million in the first quarter of 2022, down from a $129.7 million loss in the same period last year.
Truist Securities analyst Michael Ciarmoli downgraded Virgin Galactic from Buy to Hold with a price target of $8.00 (from $24.00).
Ciarmoli’s move comes after Canaccord Genuity analyst Austin Moeller also downgraded SPCE stock from Buy to Hold with a price target of $8.00 (from $36.00).
Ciarmoli moved lower on the rating scale amid several mounting headwinds, including supply chain delays, timing risk, delays of commercial flights to Q1 2023, lack of positive catalysts and rising interests.
Similarly, UBS analyst Myles Walton lowered the price target on the Sell-rated SPCE stock to a new Street-low of $5.00 (down from $9.00).
“We reiterate our Sell rating given the further pushout of commercial operations and continuation of the company’s cash burn which along with our model update and peer multiples drives our price target reduction to $6/sh,” Walton said in a client note.
Shares of the spaceflight company fell nearly 4% in premarket Monday.
By Senad Karaahmetovic
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