Why Wells Fargo remains bearish on Virgin Galactic stock

Analysts at Wells Fargo remain bearish on Virgin Galactic Holdings (NYSE:) shares, saying in a research note Thursday that it’s “still a waiting game.”

The bank maintained an Underweight rating on the shares, cutting the target to $0.75 from $1. They stated that the Delta Class EIS is still on track, with peak cash burn still expected in the second half of this year.

The new mothership is expected to enter service one year later now, in 2028, notes Wells Fargo. “SPCE expects to move through existing backlog in 2026/27 timeframe, and sees ticket sales restarting in 2025,” they wrote.

“Cash burn [is] still expected to peak later this year with more tooling/parts to build. Next major investments for the spaceport include an additional hangar and training facilities.”

Overall, the bank feels that while SPCE plans to reopen ticket sales in 2025, analysts continue to see a lack of positive catalysts for stock in the near term.