Vertical Aerospace: Reaffirmed Buy on Superior Valo eVTOL Economics, Regulatory Progress, and Discounted Valuation

Analyst Amit Dayal from H.C. Wainwright reiterated a Buy rating on Vertical Aerospace and keeping the price target at $15.00.

Amit Dayal has given his Buy rating due to a combination of factors tied to Vertical Aerospace’s product positioning, economics, and valuation. He highlights that the new Valo eVTOL offers a substantially higher payload and true six-passenger configuration, including standard checked baggage, which directly addresses the needs of airport shuttle use cases where luggage handling and passenger comfort are critical. This higher-capacity layout, including a more premium cabin configuration, is expected to enhance route economics through greater revenue per flight, broader customer reach, and more flexibility in pricing and capacity management compared to many current four-passenger competitors.

Amit Dayal’s rating is based on the view that the company is progressing on major technical and regulatory milestones while trading at a notable discount to U.S. peers. He points to upcoming flight-test phases, design reviews, and anticipated strategic financing as catalysts that could unlock higher valuation, as well as the potential for hybrid-electric platforms to tap European defense demand. In addition, he notes that Vertical Aerospace’s business model extends beyond aircraft sales into high-margin services such as maintenance, training, cloud-based offerings, and battery-related revenue streams, supported by an existing order backlog of roughly 1,500 units and strong projected long-term growth. Using a discounted cash flow framework adjusted for execution risk, he derives a target price of $15 per share, which underpins his reaffirmed Buy recommendation despite acknowledged risks around funding, regulation, technology, and market adoption.

Dayal covers the Industrials sector, focusing on stocks such as Plug Power, Joby Aviation, and Vertical Aerospace. According to TipRanks, Dayal has an average return of 2.5% and a 38.09% success rate on recommended stocks.