Maxim Group analyst Allen Klee reiterated a Buy rating on JetAI (JTAI – Research Report) yesterday and set a price target of $20.00.
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Allen Klee has given his Buy rating due to a combination of factors that highlight JetAI’s strategic shift and financial positioning. The company is transitioning from owning aviation physical assets to focusing on its AI and data center businesses, which are seen as more promising and lucrative. This shift is underscored by a definitive agreement to sell its aviation assets to flyExclusive, allowing JetAI to concentrate on its brokerage, software, and AI operations.
Furthermore, JetAI’s financial health is bolstered by a cash reserve of $12.5 million and a $50 million equity line of credit, ensuring sufficient liquidity to meet operational needs and support the transition. Despite a challenging quarter with a revenue decline and increased maintenance costs, the company’s strategic pivot and solid cash position underpin Klee’s confidence in management’s ability to navigate the transition successfully. The stock’s valuation, based on a discounted cash flow analysis, supports a price target of $20, reflecting optimism about future revenue growth.