- Bank of America slashed its Virgin Galactic from $41 to $25 on Friday, representing a downgrade of 39%.
- Analysts cited delays in the company's commercial space flight schedule and a lack of catalysts in the short term.
- Virgin Galactic fell about 1% Friday to $23.99.
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Bank of America slashed its Virgin Galactic price target by 39% on Friday, citing concerns over delays in the company's commercial space flight timeline and lack of catalysts for the stock in the short-term.
Analysts led by Ronald J. Epstein lowered their price target to $25 from $41. Shares of Virgin Galactic traded just above $24 Friday afternoon and are down 4.8% for the week.
BofA said that a longer maintenance for Virgin's Eve Mothership will delay the company's first commercial passenger flight to late into the third quarter of 2022 from early 2022. This will result in lower short-term earnings estimates, said the analysts.
In the long term, analysts also anticipate that Virgin's shot at orbital customer travel won't come to fruition until 2035. They previously estimated 2028 for the base case.
Meanwhile, Virgin Galactic lacks short-term catalysts because of the delayed commercial space flight, BofA said. The stock may also face downward pressure as the next lock-up period expires in October, they added.
Virgin Galactic is up 1.9% year-to-date.