UBS downgrades Virgin Galactic as the bank says nearly 200% rally leaves no upside left for the stock

• UBS downgraded Virgin Galactic stock to "neutral," saying most optimism is already priced in.
• Shares of the space flight company have gained almost 200% since mid-May.
• UBS Analyst Myles Walton also said the stock could face pressure in the fall amid lock up expiration.

Virgin Galactic's stock price doesn't have any further room to run, according to UBS.

The space flight company has gained almost 200% since mid-May as it comes closer to manned flights and prepares for a voyage with Richard Branson onboard next week.

However on Monday UBS analyst Myles Walton downgraded the stock from "buy" to "neutral," saying in a note to clients that most optimism around the business is already reflected in the current stock price.

"Going into our May upgrade, the stock had fallen on fears of flight delays and competitive pressures, but both of which are now fully receded," Walton said. "We remain optimistic in the event path ahead supported by the recent FAA operator license update, paving the way for another powered flight, just announced, for July 11th. Though we view this catalyst chain as appealing, at the stock's current levels, we do see a lot priced in."

Walton also upgraded Virgin's price target to $45, from $36. Shares currently trade at $46.

Walton added that the stock could face pressure in the fall as news flow around Virgin's space flight program cools off while the program undergoes maintenance. Share lock-ups from the original investor base will expire in the fall, which could also add pressure to the stock price, he said.