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Virgin Galactic (SPCE) soared on Thursday amid heightened optimism for space stocks ahead of the much-anticipated SpaceX debut on June 12.

Other names riding the same wave of pre-IPO momentum sweeping through the sector include AST SpaceMobile (ASTS), Rocket Lab (RKLB), and Planet Labs (PL).

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The SpaceX-driven rally brings much-needed reprieve to Virgin Galactic stock that was otherwise down about 35% versus its recent high.

SpaceX is seeking a whopping $1.75 trillion valuation through the IPO — an ask that’s essentially reshaping how Wall Street views the commercial space sector as an investable category.

On June 11, investors are rotating into the publicly traded space stock as a means of gaining exposure to the sector before SpaceX hits the market.

It’s this rotation that’s driving SPCE shares higher on Thursday, given it’s one of the most renowned brands in commercial spaceflight.

Following recent gains, Virgin Galactic sits firmly above its key moving averages (MAs), with an RSI in the mid-60s indicating intense buying pressure.

The SpaceX narrative is amplifying the move, but Virgin Galactic shares also have their own story developing.

VSS Unity is back in glide flights at Spaceport America, with next-generation spaceship glide tests targeted for Q3 and commercial spaceflights aimed for the final quarter of 2026.

The company has recently completed a partial debt-for-equity exchange as well, redeeming more than $30 million of its 9.8% First Lien Notes due 2028 — a meaningful step toward cleaning up its capital structure.

Meanwhile, the Delta spacecraft program's progress, resumed ticket sales at $750,000 per seat, and a narrowing net loss make up for additional reasons to own SPCE at current levels.

Despite aforementioned positives, Wall Street firms recommend caution in chasing the momentum in SPCE stock, especially since it’s going for nearly 300x sales at writing.

The consensus rating on Virgin Galactic sits at “Hold” currently, with the mean price target of $3.29 indicating potential downside of about 45% 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. This article was originally published on Barchart.com