Austin Moeller, an analyst from Canaccord Genuity, maintained the Buy rating on Vertical Aerospace (EVTL – Research Report). The associated price target remains the same with $13.50.
Austin Moeller has given his Buy rating due to a combination of factors that highlight Vertical Aerospace’s strategic positioning and potential for growth. Despite reporting a significant annual loss, the company has demonstrated strong capital efficiency by reducing R&D expenses and securing sufficient funding to support operations through FY25. This financial stability is bolstered by a recent equity offering that has increased their cash reserves significantly.
Austin Moeller also notes Vertical Aerospace’s promising future revenue streams, particularly through its aftermarket battery business, which is expected to generate high-margin returns. Additionally, the company’s strategic focus on defense markets, especially with European NATO allies, presents a lucrative opportunity. Vertical’s competitive edge is further strengthened by its substantial aircraft backlog and its unique position as the only European survivor among its eVTOL peers, which could lead to an increase in firm orders. These factors, combined with leadership changes and strategic hires, underpin Moeller’s optimistic outlook and Buy rating.
In another report released on March 11, H.C. Wainwright also maintained a Buy rating on the stock with a $12.00 price target.
EVTL’s price has also changed dramatically for the past six months – from $0.788 to $3.600, which is a 356.85% increase.