J.P. Morgan analyst Bill Peterson has maintained their bearish stance on JOBY stock, giving a Sell rating on February 28.
Bill Peterson has given his Sell rating due to a combination of factors affecting Joby Aviation’s prospects. One primary concern is the uncertainty surrounding the timing of FAA certification in the United States, which could delay revenue generation and increase cash burn for the company. This uncertainty has led Joby to pivot towards other markets, such as the Middle East, where regulatory bodies are more proactive in certifying eVTOLs.
Additionally, while Joby’s vertically integrated supply chain could offer advantages in terms of flexibility and control over the certification process, it also introduces risks compared to sourcing from established aerospace suppliers. The capital-intensive nature of Joby’s operations means the company will likely remain in fundraising mode, which could strain financial resources. Furthermore, the commercialization of Joby’s technology, including its ElevateOS stack and infrastructure partnerships, is still in its early stages, with significant milestones yet to be achieved. These factors collectively contribute to the cautious outlook and Sell rating for Joby’s stock.
In another report released on February 28, Deutsche Bank also maintained a Sell rating on the stock with a $4.00 price target.