Lilium downgraded to Neutral at Cantor Fitzgerald yesterday

As previously reported, Cantor Fitzgerald downgraded Lilium (LILM) to Neutral from Overweight and withdrew the firm’s previous $2 price target after the company disclosed that its application for a EUR 50M guarantee of a contemplated EUR 100M convertible loan was rejected by the Federal Republic of Germany. This is a “disappointing outcome” since Lilium was relying on this funding not only to fund near-term operations, but also to incentivize other investors to raise additional capital, the analyst tells investors. If a non-dilutive loan from the French Government with disbursements over several quarters is approved, the firm believes Lilium’s cash runway would be sufficient to only fund the company until Q2 or Q3 of 2025 even with French, Bavarian, private and strategic investor funding, Cantor added.