SPCE Stock In Focus After Jefferies Sees Massive Upside On Virgin Galactic's Delta Program Progress Ahead Of SpaceX IPO

• Virgin Galactic moved its first Delta spacecraft to a Phoenix testing facility in May.
• The company plans flight testing in Q3 and an expected commercial launch in Q4 2026. 
• SPCE narrowed its Q1 net loss to $65 million from $84 million while reducing operating expenses. 

Virgin Galactic Holdings (SPCE) stock has Jefferies’ backing after the company used its fiscal first-quarter (Q1) earnings update to reassure investors that its long-delayed commercial space tourism strategy remains on course.

In May, the company moved its first Delta spaceship from the production area to a testing and launch center at its Phoenix site, marking an important milestone by starting ground checks before planned test flights in the third quarter. 

Jefferies’ Bullish Stance On SPCE 

Jefferies on Sunday said the aerospace company remains on track with previously outlined milestones, including the start of ground-based testing during the second quarter and the beginning of flight trials in Q3. 

Analysts added that the company still expects the Delta spaceship to enter commercial service during Q4. Jefferies said Virgin Galactic’s Q1 performance reinforced confidence in management’s execution timeline. 

The firm maintained its ‘Buy’ recommendation on the stock with a price target of $5, implying an upside potential of about 78% to the stock’s closing price on Friday. 

The analyst also pointed to renewed ticket sales as another positive indicator. Virgin Galactic recently reopened bookings for a limited number of private spaceflight experiences, pricing seats at $750,000 each. 

Jefferies said customer interest still appears solid, especially with around 650 people already waiting for flights. The firm also said Virgin Galactic’s current cash position gives the company some financial stability as it continues testing and prepares to launch commercial operations. 

Virgin Galactic stock edged 0.4% higher overnight, heading into Monday. 

Q1 Performance And SpaceX IPO Momentum 

The spaceflight company generated $0.2 million in revenue during Q1, down from $0.5 million last year, but significantly reduced expenses as Q1’s total operating expenses fell to $66 million from $89 million last year. 

Virgin Galactic posted a net loss of $65 million in Q1, improving from an $84 million loss in Q1 2025. In Q1, the company raised approximately $11 million through its at-the-market stock offering program.

Virgin Galactic may be approaching a major turning point as investors get ready for SpaceX’s much-awaited stock market debut on the Nasdaq in June 2026 under the ticker SPCX. Virgin’s Delta class is a new lineup of spaceplanes built to help expand commercial space tourism. 

The planned listing, targeting a valuation of roughly $1.75 trillion, is expected to reshape how investors view the broader commercial space industry. The upcoming offering is already fueling interest across publicly traded space companies, while also creating pressure on smaller firms like SPCE to prove their long-term business models.

SPCE Retail Traders View 

On Stocktwits, retail sentiment around the stock remained in “neutral” territory with a 22% increase in message volume. 

A user said, “$SPCE good buy tomorrow with $SPCX IPO nearing.” 

Another user said, “FUNNY ONLY BEAR CASE IS THEY DONT MAKE MONEY , LITTERALLY PRE REVENUE COMPANY AT THIS POINT. ITS LIKE THEY DONT UNDERSTAND WHEN THEU OPEN FOR BUISNESS THEY WILL START MAKEN PLENTY.”

SPCE stock has declined by over 12% year-to-date. 

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