Vertical Aerospace: Premier eVTOL Play Poised to Double on Strong Management, Differentiated Valo Aircraft, and High-Margin Battery Recurring Revenue

Louie DiPalma, an analyst from William Blair, has initiated a new Buy rating on Vertical Aerospace (EVTL).

Louie DiPalma has given his Buy rating due to a combination of factors that, in his view, position Vertical Aerospace as a leading beneficiary of the emerging urban air mobility market. He highlights the company’s strong management team with deep aerospace experience and its differentiated Valo aircraft design, which is tailored for high-demand airport and regional routes, including the ability to handle passenger luggage where many competitors cannot. He also points to Vertical’s status as a premier European eVTOL manufacturer with a clear certification roadmap and a business model focused on repeatable short-haul missions that emphasize efficiency and passenger experience.

DiPalma further underscores Vertical’s in-house battery development as a core strategic advantage, creating a proprietary, high-margin recurring revenue stream from expected battery replacements. He notes that Vertical has already built a diversified base of major prospective customers—such as American Airlines, Bristow Group, and Japan Airlines—with agreements covering about 1,500 aircraft, as well as incremental potential from military, cargo, and emergency service applications via a hybrid variant. Based on his long-term free cash flow projections and a valuation multiple he views as appropriate for the company’s growth profile, he believes the market is significantly discounting Vertical’s prospects and sees more than a doubling of the share price as achievable over the next year, with additional upside beyond that timeframe.

In another report released on December 29, Canaccord Genuity also maintained a Buy rating on the stock with a $11.00 price target.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EVTL in relation to earlier this year.