Even though air mobility firm Joby Aviation (JOBY) just completed a groundbreaking test flight between two FAA-controlled airports, its stock is down at the time of writing. Indeed, this flight is seen as a major step forward in the company’s effort to get an FAA certification for its electric air taxi and enter the commercial passenger market. Interestingly, the aircraft took off from Marina, California, and landed in Monterey after flying 10 nautical miles in 12 minutes, which included five minutes in a holding pattern as it coordinated with other aircraft.
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As a result, this is the first time a piloted electric vertical takeoff and landing (eVTOL) air taxi has traveled between two public airports. The test flight also showed that Joby can support its aircraft remotely, both in terms of flight operations and ground handling, and strengthens its ability to scale operations in the future. In addition, it builds on Joby’s recent progress, such as a successful flight in Dubai, a strategic partnership with L3Harris (LHX) to explore military use of its VTOL aircraft, the acquisition of Blade Air Mobility, and plans to expand its California facility to double production capacity.
Despite the stock’s recent dip, Joby has seen impressive long-term growth. In fact, shares have surged by 237% over the past year and are up 118% in just the last six months, far outperforming the broader market, which gained only 6% during that same time. While investors may be taking some short-term profits, the company continues to hit key milestones that support its long-term growth potential.
Is JOBY Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on JOBY stock based on one Buy, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average JOBY price target of $12.50 per share implies 26.9% downside risk.
