Chris Pierce, an analyst from Needham, has initiated a new Buy rating on Vertical Aerospace (EVTL).
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Chris Pierce has given his Buy rating due to a combination of factors that highlight Vertical Aerospace’s promising position in the eVTOL industry. The company is recognized as a pure play eVTOL OEM that is making significant progress in closing the performance gap with industry leaders. This is evidenced by their recent piloted flight achievements, which demonstrate their capability to operate efficiently with less capital.
Moreover, Vertical Aerospace’s strategic framework, FlightPath 2030, provides a clear and attainable path to profitability. The company is poised to benefit from upcoming short-term catalysts, such as regulatory approvals and flight milestones, which are expected to bolster confidence in its long-term potential. The $9 price target set by Chris Pierce is based on a conservative valuation, reflecting a 7.5x multiple of the projected 2032 adjusted EBITDA, discounted back, which is considered reasonable compared to other companies in the eVTOL sector.
Pierce covers the Consumer Cyclical sector, focusing on stocks such as Blue Bird, CarMax, and Sonic Automotive. According to TipRanks, Pierce has an average return of -3.1% and a 41.01% success rate on recommended stocks.
In another report released on July 13, Canaccord Genuity also maintained a Buy rating on the stock with a $11.00 price target.