In a report released today, Wayne Fung from CMB International Securities maintained a Buy rating on Ehang Holdings (EH – Research Report), with a price target of $30.00.
Wayne Fung has given his Buy rating due to a combination of factors that highlight EHang Holdings’ strategic advancements and market potential. A significant development is EHang’s receipt of the first-ever Operator Certificate (OC) from the Civil Aviation Administration of China, which allows the company to conduct commercial operations with its pilotless passenger-carrying eVTOL aircraft. This milestone positions EHang as a pioneer in the aviation industry, enabling it to capitalize on opportunities in aerial tourism and air taxi services in key regions like Guangzhou and Hefei.
Furthermore, EHang’s ability to secure this certification underscores its competitive advantage and strengthens its market position. The company’s focus on expanding its operations aligns with the anticipated growth in the low-altitude economy. Despite a net loss in the fourth quarter of 2024, EHang aims for substantial revenue growth in 2025, reflecting its strategic initiatives and market potential. These factors collectively support Wayne Fung’s decision to maintain a Buy rating with an unchanged target price of US$30.