Virgin Galactic (SPCE) shares have inched higher in recent sessions after the company confirmed that it has reopened ticket sales for its commercial spaceflight expeditions.
SPCE is now offering seats at a new price point of $750,000, representing a significant increase of about $100,000 it charged before pausing operations nearly two years ago.
Despite the aforementioned surge, however, Virgin Galactic stock remains down roughly 25% versus the start of this year.
TD Cowen Sees Significant Further Upside in SPCE Stock
According to TD Cowen analysts, SPCE shares are worth buying into strength on Wednesday since the firm’s premium pricing strategy positions it to capitalize on a high-demand, low-supply luxury market.
In their research note, they also pointed to Virgin’s clear path to profitability, with customer revenue expected by the end of this year and positive cash flow targeted for 2027.
Additionally, the NYSE-listed firm has significantly strengthened its balance sheet by pushing debt maturities to 2028 and maintaining $138 million in capital capacity as well.
Together, these initiatives provide the necessary runway to bridge the gap between its current cash burn and its long-term commercial goals, which TD Cowen believes could drive the stock to $4.50 by year-end.
Transition to Delta Ships Warrant Buying Virgin Galactic Shares
Virgin Galactic shares remain compelling due to the company’s transition from experimental prototypes to the Delta Class spacecraft.
Unlike its older Unity model, Delta ships are designed for rapid reusability and a notably higher operational tempo, capable of flying up to eight to 10 times per month.
CEO Michael Colglazier recently confirmed that assembly of the first Delta ship is nearly complete, with ground testing slated for April 2026.
This shift is expected to lower the cost per flight while increasing passenger capacity from four to six, providing the necessary scale to transform space tourism from a niche endeavor into a high-margin, recurring revenue business by 2027.
How Wall Street Recommends Playing Virgin Galactic
Other Wall Street firms also share TD Cowen’s optimism on Virgin Galactic.
While the consensus rating on SPCE stock sits at a “Hold” only, the mean price target of $4.08 signals potential upside of about 65% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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