Virgin Galactic Holdings (SPCE) Neutral Rating Announced by Goldman Sachs

Goldman Sachs analyst Anthony Valentini has set a new price target of $3.00 for Virgin Galactic Holdings (SPCE) with a "Neutral" rating, suggesting a balanced outlook on the company's future performance. The average one-year price target from 6 analysts is $4.46, implying an upside of 56.99% from the current price. The estimated GF Value in one year is $32.89, suggesting a potential upside of 1058.18% from the current price.

Goldman Sachs analyst Anthony Valentini has set a new price target of $3.00 for Virgin Galactic Holdings (SPCE) with a "Neutral" rating, suggesting a balanced outlook on the company's future performance. The average one-year price target from 6 analysts is $4.46, implying an upside of 56.99% from the current price. The estimated GF Value in one year is $32.89, suggesting a potential upside of 1058.18% from the current price [1].

Virgin Galactic, an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies [2].

Goldman Sachs' new rating reflects the company's cautious stance on Virgin Galactic. The investment bank noted that the space tourism company is "defining a new industry" with potential for a large market that remains unproven. Despite the company's minimal revenue of just $5.51M in the last twelve months, Goldman Sachs maintains a neutral rating due to concerns about the company's cash burn rate and the uncertainty of consumer demand [1].

The new price target of $3.00 is significantly lower than the average one-year price target of $4.46 set by other analysts. Jefferies analyst Greg Konrad, for instance, 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 [1].

Virgin Galactic's financial health remains a key concern. The company 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. Despite the loss, Virgin Galactic’s cash position remains robust at $567 million, supported by an At-the-Market offering [1].

The company's plans to commence commercial spaceflights and sales of astronaut experiences by mid-2026 are being closely monitored by analysts. Additionally, Virgin Galactic is exploring the potential for a second spaceport in Italy, which could enhance its operational capabilities [1].

Institutional investors have shown interest in Virgin Galactic, with several large investors increasing their stakes in the company. Rhumbline Advisers, for example, raised its holdings in Virgin Galactic by 19.4% in the 4th quarter, while Bank of New York Mellon Corp increased its stake by 6.8% in the same period [2].

Overall, Goldman Sachs' neutral rating and $3.00 price target suggest a cautious outlook on Virgin Galactic's future performance. While the company's potential market is promising, the risks associated with its cash burn rate and consumer demand uncertainty warrant a balanced approach.

References:
[1] https://za.investing.com/news/analyst-ratings/goldman-sachs-assumes-coverage-on-virgin-galactic-stock-with-neutral-rating-93CH-3773389
[2] https://www.marketbeat.com/instant-alerts/virgin-galactic-nysespce-given-neutral-rating-at-the-goldman-sachs-group-2025-06-30/