Eton Pharmaceuticals Experiences Record Revenue Growth and Analysts See Significant Upside Potential

Virgin Galactic Holdings (SPCE) stock has fallen by 20.10% due to delays in its commercial spaceflight program, now expected to launch in 2026 instead of summer. Analysts have downgraded the company, citing production delays and negative cash flow. While some remain optimistic about its long-term potential, the near-term outlook remains cautious.

Virgin Galactic Holdings (SPCE) stock has experienced a significant decline of 20.10% over the past week, reflecting investor concerns and analyst ratings. The stock's downward movement is largely attributed to delays in the company's commercial spaceflight program, which is now expected to launch in 2026 instead of the previously anticipated summer timeline [3].

Analysts have responded to these developments with caution. Morgan Stanley (NYSE:MS) recently lowered its price target on Virgin Galactic to $2.50 from $5.00 while maintaining an Underweight rating on the stock [1]. The investment bank cited a schedule slip in Virgin Galactic's commercial flight timeline, which pushes back potential revenue generation. Morgan Stanley acknowledged the company's long-term potential in the space tourism sector but expressed concerns about the near-term outlook.

The company's recent earnings call highlighted both progress and challenges. While Virgin Galactic has made strides in spaceship production and cost management, it continues to face hurdles such as production delays and negative cash flow. The company reported a 34% reduction in operating expenses year-over-year but still experienced negative free cash flow of $114 million for the second quarter [3].

Virgin Galactic Holdings is also facing financial challenges. The company burned through approximately $55 million in cash during the second quarter, down from about $79 million during the same period a year ago [2]. Despite these setbacks, the company holds a strong cash position of over $0.5 billion, which is expected to support its future investments [3].

While some analysts remain optimistic about Virgin Galactic's long-term potential, the near-term outlook remains cautious as investors await clearer catalysts for growth. Analysts like Oliver Chen from TD Cowen maintain a 'Buy' rating, citing the company's strategic planning and potential revenue from its Delta Class Spaceships. However, the company's recent delays and financial challenges have contributed to the stock's downward movement.

References:

[1] https://in.investing.com/news/analyst-ratings/morgan-stanley-cuts-virgin-galactic-stock-price-target-to-250-on-delays-93CH-4953551
[2] https://www.bloomberg.com/news/articles/2025-08-06/virgin-galactic-spce-to-delay-first-spaceplane-flight-to-fall-2026
[3] https://www.tipranks.com/news/weekend-updates/virgin-galactic-holdings-faces-turbulence-amid-stock-slide