Analyst Chris Pierce of Needham reiterated a Buy rating on Vertical Aerospace, retaining the price target of $9.00.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight Vertical Aerospace as a promising investment opportunity in the eVTOL sector. The company’s VX4 aircraft is on track to join the ranks of other notable tilt rotor aircraft, marking a significant milestone in its development and demonstrating its full capabilities. This achievement is seen as a major step in reducing the risks associated with the company’s story.
Despite existing concerns regarding the balance sheet, there is optimism due to the potential involvement of a strategic investor, which is common in the industry. Additionally, the company is approaching key technical milestones and has a clearer path to certification, which collectively lower the barriers to securing additional capital. The price target of $9 is based on a conservative multiple of the projected adjusted EBITDA for 2032, reflecting a cautious yet optimistic outlook on the company’s future financial performance.
Pierce covers the Consumer Cyclical sector, focusing on stocks such as Sonic Automotive, Rivian Automotive, and Carvana Co. According to TipRanks, Pierce has an average return of -3.9% and a 38.50% success rate on recommended stocks.