Joby Aviation (JOBY), an electric vertical takeoff and landing (eVTOL) aircraft maker, has seen its shares rise about 31% over the past year, driven by progress with the FAA and early revenue generation. However, the stock fell nearly 17% on Thursday and extended losses on Friday after the company announced a new capital raise, raising dilution concerns. Cathie Wood stepped in on the pullback, buying 781,519 shares of Joby worth more than $10 million through ARK ETFs on January 29. Overall, Wall Street remains cautious on the stock due to ongoing cash burn and uncertainty around the timing of large-scale commercial operations.
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Trade JOBY with leverageAnalysts Are Cautious on Joby Stock
Last month, Goldman analyst Anthony Valentini initiated coverage on Joby Aviation with a Sell rating and a $10 price target. He said that while Joby is ahead in testing and certification, that lead may not translate into a clear advantage. Valentini also raised concerns about valuation, manufacturing scale, and the high cost of running air-taxi operations.
Meanwhile, H.C. Wainwright analyst Amit Dayal reiterated a Neutral rating on Joby Aviation after attending the Dubai Air Show. He pointed to strong interest from the UAE in bringing eVTOL services to market and a growing focus on vertiport infrastructure. However, Dayal said regulatory hurdles and launch timelines remain key risks, keeping his view on the stock cautious.
Is Joby Aviation a Good Buy Now?
According to TipRanks, JOBY stock has received a Hold consensus rating, with one Buy, three Holds, and two Sells assigned in the last three months. The average stock price target for Joby is $15.67, suggesting a potential upside of 40.66% from the current level.
