Shares of Joby Aviation (JOBY) are up in today’s trading after the aerospace company announced a partnership with defense contractor L3Harris Technologies (LHX) to adapt its vertical take-off and landing (VTOL) aircraft for military use. Interestingly, the collaboration combines Joby’s commercial aircraft program with L3Harris’ expertise in sensors, communications, and autonomous systems.
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Furthermore, Joby is developing a hybrid VTOL aircraft that uses a gas turbine, which is designed for low-altitude missions and capable of operating either with a pilot or fully autonomously. According to L3Harris executive Jon Rambeau, this vertical lift technology will allow for long-range missions that involve both crewed and uncrewed aircraft. He also explained that the companies share a vision to quickly deliver innovative VTOL aircraft designed to meet urgent defense needs.
As a result, flight testing of the aircraft is scheduled to begin this fall, with demonstrations expected to take place in 2026. In addition to military projects, Joby is working on an electric VTOL (eVTOL) air taxi for civilian use. In fact, the company is scaling up production at its California facility and hopes to receive final FAA certification for the eVTOL by 2026.
Is JOBY Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on JOBY stock based on three Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average JOBY price target of $10 per share implies 40.6% downside risk.
