Virgin Galactic: Goldman Sachs assumes Neutral, price target $3.

Virgin Galactic: Goldman Sachs assumes Neutral, price target $3.

June 19, 2025

Goldman Sachs has assumed coverage on Virgin Galactic (NYSE: SPCE) with a neutral rating and a price target of $3.00, as reported by Investing.com [2]. The stock currently trades at $2.86, having declined by over 66% in the past year. The coverage transition from analyst Noah Poponak to Anthony Valentini maintains a cautious stance on the space tourism company, which Goldman Sachs describes as "defining a new industry" with potential for a large market that remains unproven.

According to Goldman Sachs, Virgin Galactic currently generates minimal revenue and does not expect revenue-generating flights until 2026, resulting in unprofitability and hundreds of millions in annual free cash flow burn. The investment bank expressed concern about the company’s capital needs, pointing out that if Virgin Galactic cannot meet its current schedule, it may need to raise additional capital—something it has done multiple times since going public in October 2019.

Goldman Sachs' analysis suggests investor dilution risks make the stock difficult to recommend compared to other companies in its coverage universe that are "fast growing, highly profitable, cash generative businesses that serve proven/mature end markets."

In recent news, Virgin Galactic reported a first-quarter loss of $2.38 per share on revenue of $460,000, a decrease from $2 million in the same quarter last year. The decline in revenue is linked to a pause in commercial spaceflights as the company focuses on its new Delta Class SpaceShips. Despite the loss, Virgin Galactic’s cash position remains robust at $567 million, supported by an At-the-Market offering. Jefferies analyst Greg Konrad adjusted the company’s price target to $8.00, down from $9.00, but maintained a Buy rating, citing the company’s secure financial position and operational milestones as key factors. Meanwhile, Goldman Sachs reiterated a Neutral rating with a $32.00 price target, highlighting concerns about the company’s cash burn rate and the uncertainty of consumer demand.

Virgin Galactic’s plans to commence commercial spaceflights and sales of astronaut experiences by mid-2026 are being closely monitored by analysts. The company is also exploring the potential for a second spaceport in Italy, which could enhance its operational capabilities.

References:
[1] https://www.benzinga.com/quote/SPCE/analyst-ratings
[2] https://www.investing.com/news/analyst-ratings/goldman-sachs-assumes-coverage-on-virgin-galactic-stock-with-neutral-rating-93CH-4116487