Joby Aviation (JOBY), a pioneer in electric vertical takeoff and landing (eVTOL) aircraft, is making headways in the aviation sector with significant advancements and regulatory approvals. The FAA has granted permission for its ElevateOS, a software solution designed to enhance the service for pilots, operations, and schedule management while introducing a sophisticated rider app. Furthermore, the company has successfully tested a hydrogen-electric air taxi and integrated Xwing’s autonomy division into its portfolio.
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Joby is set for global expansion with its eyes on the international markets, including Australia and the UAE. Supported by a robust financial investment by Toyota (TM), the company is well-positioned for sustained growth and commercial ventures in the booming air mobility industry, making it a compelling option for forward-looking investors.
Joby Is Making Progress on Multiple Fronts
Joby Aviation is an air transportation company building electric vertical takeoff and landing aircraft. The company currently has four aircraft in active flight testing, and progress toward the fourth (of five) stage of certification is expected to accelerate throughout the remainder of the year.
The company recently executed a ground-breaking 561-mile flight with a hydrogen-electric air taxi and has strengthened its autonomous technology capabilities by acquiring the autonomy division of Xwing. Internationally, Joby has applied for certification in Australia and has partnered with Saudi Arabia’s Mukamalah to introduce its aircraft to the Kingdom.
In other news, the Federal Aviation Administration’s (FAA) newly announced regulations pave the way for Joby to launch commercial passenger service in the U.S. once its aircraft is certified. Joby is also making headway in the United Arab Emirates, taking the first step to becoming a certified air taxi operator. This aligns with Joby’s agreement with Dubai’s Road and Transport Authority to launch air taxi services and a subsequent expansion of its partnership with the UAE through a Memorandum of Understanding with various departments.
Lastly, the company received a further commitment for substantial investment from Toyota. The automotive giant intends to inject another $500M into Joby, expediting the certification and commercialization of Joby’s aircraft.
Joby’s Recent Financial Results
The company released its Q2 financials, highlighting results that exceeded expectations. Total operating expenses for the quarter were almost $2 million less than the first quarter. The higher staffing and spending were counteracted by increased government contract deliverables, which were recorded as reduced expenses.
Joby incurred a net loss of $123 million in Q2, triggered by a loss from operations totaling about $144 million. This loss was partly counterbalanced by interest and other income of $21 million. However, the net loss increased by $29 million compared to the previous quarter due to a less favorable revaluation of the company’s warrants and earn-out shares. Earnings per share (EPS) of -$0.18 aligned with analysts’ predictions.
As of the quarter’s end, the company reported having $175 million in cash and cash equivalents. That jumps to a substantial $825 million when including short-term investments. The company remains on track to realize its 2024 cash spending outlook, which amounts to $440-470 million.
What Is the Price Target for Joby Stock?
The stock has been volatile, with a beta of 2.49, as it bounced around the past few years, posting a loss of 31% over the past three years. However, it trades near the upper end of its 52-week price range of $4.50 – $7.69 and shows positive price momentum as it trades above its 20-day (5.49) and 50-day (5.40) moving averages.
Analysts following the company have expressed divergent opinions on JOBY stock. For instance, H.C. Wainwright analyst Amit Dayal recently initiated coverage with a Buy rating and $9 price target, noting the company could begin initial commercial operations in 2025. In contrast, Deutsche Bank analyst Edison Yu has issued a Sell rating on the stock with a price target of $4.00, highlighting the company’s substantial capital requirements and potential capital shortfall.
Based on six analysts’ recent recommendations, Joby Aviation is rated a Moderate Buy overall. The average price target for JOBY stock is $8.70, representing a potential upside of 68.60% from current levels.
Bottom Line on JOBY
Joby Aviation is making strides with its electric vertical takeoff and landing (eVTOL) aircraft. The company received FAA permission for its comprehensive software solution, ElevateOS, and tested a hydrogen-electric air taxi. It aims for international expansion, powered by substantial financial backing from Toyota. Analysts predict a potential catalyst for the stock, with commercial operations projected to commence in 2025. This confluence of technological innovation and promising market prospects make Joby Aviation an enticing option for investors interested in participating in the next evolution of the air industry.
