12:06 PM EDT, 09/17/2024 (MT Newswires) -- Virgin Galactic Holdings ( SPCE ) has limited near-term catalysts as it completed its last commercial flight in June and will hold off flights until the operation of its new Delta-class spaceship around 2026, Morgan Stanley said in a Tuesday note.

The company is currently focused on delivering its first production-class spaceship, but Morgan Stanley said its has "generally more conservative expectations" on the timeline for Delta's launch and subsequent ramp up to the targeted two flights per week.

"We see potential in the business model over the long term," said the investment firm, noting that Virgin Galactic ( SPCE ) must first complete the first two Delta ships and prove their capacity for frequent flights.

Morgan Stanley reiterated its underweight rating on Virgin Galactic Holdings ( SPCE ). with a lower price target of $5 from $35.

Shares of Virgin Galactic Holdings ( SPCE ) were down more than 3% in recent trading.

Price: 6.95, Change: -0.21, Percent Change: -2.93