Canaccord Genuity analyst Austin Moeller maintained a Buy rating on Vertical Aerospace (EVTL – Research Report) yesterday and set a price target of $13.50.
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Austin Moeller has given his Buy rating due to a combination of factors that highlight Vertical Aerospace’s strategic advancements and financial outlook. The company has reported a significant reduction in R&D expenses, attributed to the transition of Aircraft 3 to the assembly phase and the in-house development of key components like the battery system and propellers. This cost optimization aligns with their strategic focus on enhancing operational efficiency.
Moreover, Vertical Aerospace’s partnership with Honeywell, which involves a substantial contract for the VX4 aircraft’s flight deck and inceptors, underscores confidence in the company’s production capabilities. The development of a hybrid powertrain for the VX4, aimed at expanding its operational range and payload capacity, is particularly noteworthy. This innovation targets the European defense market, potentially increasing the total addressable market. These strategic moves, coupled with the company’s cash management and future capital raising plans, form the basis for Moeller’s optimistic outlook on the stock.