Goldman Sachs Initiates Coverage on Virgin Galactic with Neutral Rating and $3 Price Target

Goldman Sachs initiated coverage of Virgin Galactic with a Neutral rating and $3 price target. The analyst believes the company is defining a new industry with potential, but is currently unproven and unprofitable. Virgin Galactic generates minimal revenue and burns hundreds of millions of dollars annually in free cash flow. The firm expects revenue-generating flights in 2026.

Goldman Sachs has downgraded AllianceBernstein (NYSE: AB) stock from a Buy rating to Neutral, while maintaining a price target of $40.00. The stock is currently trading near its 52-week high of $41.86. The investment bank cited emerging signs of slowing organic growth across both Equities and Fixed Income segments, which could offset benefits from the company’s structurally stronger growth areas such as Private Markets [1].

Despite acknowledging AllianceBernstein’s strong positioning, including its growing presence in Private Markets, partnership with Equitable, and better-than-peer average growth in traditional liquid products, Goldman Sachs expects the company’s organic growth to remain negative through 2026 before turning positive at approximately 1% in 2027. The bank also lowered its earnings estimates for AllianceBernstein to $3.30, $3.58, and $3.99 for 2025, 2026, and 2027 respectively [1].

AllianceBernstein reported its first-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share of $0.80. The company announced net revenues of $838 million, which, despite a 5% decrease year-over-year, showed a 6% increase on a like-for-like basis. Assets under management rose to $803 billion in May 2025, up from $781 billion in April, driven primarily by market appreciation [1].

The downgrade comes amidst positive financial performance, with the company maintaining a robust financial health score of 3.46/5 and offering an attractive 7.9% yield. However, Goldman Sachs’ concerns about slowing growth and the company’s current unprofitable status suggest a cautious outlook for investors.

References:
[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-downgrades-alliancebernstein-stock-on-slowing-growth-93CH-4113755