Virgin Galactic (NYSE:) introduced final week it’s rescheduling the launch of its industrial area flight service to the primary quarter of 2023 because of provide chain and labor challenges.

“We stay up for returning to area within the fourth quarter and launching industrial service within the first quarter of subsequent yr,” stated the corporate’s CEO Michael Colglazier stated.

Virgin Galactic initially deliberate to launch the industrial area flight service within the fourth quarter of final yr.

Virgin Galactic a web lack of $93.1 million within the first quarter of 2022, down from a $129.7 million loss in the identical interval final yr.

Truist Securities analyst Michael Ciarmoli downgraded Virgin Galactic from Purchase to Maintain with a worth goal of $8.00 (from $24.00).

Ciarmoli’s transfer comes after Canaccord Genuity analyst Austin Moeller additionally downgraded SPCE inventory from Purchase to Maintain with a worth goal of $8.00 (from $36.00).

Ciarmoli moved decrease on the ranking scale amid a number of mounting headwinds, together with provide chain delays, timing threat, delays of business flights to Q1 2023, lack of constructive catalysts and rising pursuits.

Equally, UBS analyst Myles Walton lowered the worth goal on the Promote-rated SPCE inventory to a brand new Road-low of $5.00 (down from $9.00).

“We reiterate our Promote ranking given the additional pushout of business operations and continuation of the corporate’s money burn which together with our mannequin replace and peer multiples drives our worth goal discount to $6/sh,” Walton stated in a consumer notice.

Shares of the spaceflight firm fell almost 4% in premarket Monday.

By Senad Karaahmetovic