Cantor Downgrades Joby Aviation Stock on Lack of Near-Term Upside

Cantor Fitzgerald downgraded electric vertical takeoff and landing (eVTOL) aircraft maker Joby Aviation (JOBY) to Hold from Buy with a price target of $9, as it sees a lack of near-term upside in the stock. While JOBY stock plunged about 8% on Thursday due to the rating downgrade, it has rallied 26.5% over the past month. The stock is up 9.1% year-to-date, driven by a favorable executive order signed by U.S. President Donald Trump and the announcement of new deals.

The executive order would direct the Transportation Department to develop a program to accelerate eVTOL operations in the U.S. It is expected to benefit players like Joby Aviation and Archer Aviation (ACHR).

Earlier this month, Joby Aviation signed a Memorandum of Understanding (MoU) with Abdul Latif Jameel to explore establishing a distribution agreement in Saudi Arabia for the company’s electric aircraft. The agreement involves potential delivery of up to 200 Joby aircraft and related services valued at about $1 billion.

Cantor Moves to the Sidelines on JOBY Stock

Cantor analyst Andres Sheppard acknowledges that Joby Aviation remains one of the best-positioned companies in the eVTOL sector, given its partnerships with Toyota (TM), Delta Air Lines (DAL), and the U.S. Department of Defense. However, the 4-star analyst finds JOBY stocks’ valuation to be stretched, following the 60% rally over the past three months and almost 90% in the past year. “We don’t see current levels as a good entry point for investors,” said Sheppard.

The analyst noted that while Joby Aviation has solid liquidity, it also has one of the highest cash burn rates in the sector. The company ended Q1 2025 with about $1.3 billion in total liquidity, including its Toyota’s $250 million funding. It expects to spend between $500 million and $540 million in 2025.

Additionally, Sheppard cautioned about delays in U.S. certification, though Joby reaffirmed plans to commence pilot testing in Dubai by mid-2025. The company plans to start carrying passengers in the region in the first half of next year. The analyst doesn’t expect Joby Aviation to secure full FAA Type Certification until at least the second half of 2026.

Finally, Sheppard pointed out persistent uncertainty around the company’s unit economics, including pricing and deployment costs of its air taxi service.

Is Joby Stock a Good Buy?

Wall Street has a Moderate Buy consensus rating on Joby Aviation stock based on three Buys, three Holds, and one Sell recommendation. The average JOBY stock price target of $8.86 indicates that the stock is fully priced at current levels.

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