BTIG maintains neutral rating on Eve Holding stock

On Tuesday, BTIG analyst Marvin Fong maintained a Neutral rating on Eve Holding Inc. (NYSE:EVEX), currently valued at $1.08 billion. Fong highlighted that while the company achieved its 2024 milestones, challenges lay ahead in 2025 with plans to start flight-testing and production of its first certification-compliant prototype. According to InvestingPro data, the company’s stock has experienced significant volatility, with a 27% gain over the past six months despite a 33% decline year-to-date. Eve Holding reported increased liquidity, now standing at $429 million compared to $305 million at the end of the third quarter in 2024, following successful capital raises including a $50 million bank debt facility and $123 million in aggregate credit lines from the Brazil National Development Bank (BNDES).

The company, which is engaged in developing electric vertical take-off and landing (eVTOL) vehicles, believes it has sufficient funding through 2026. The anticipated cash burn for 2025 is projected to be between $200 and $250 million, an increase from the 2024 range of $130 to $170 million, with actual 2024 cash burn reported at $141 million. This figure exceeds the previously estimated cash burn of $184 million expected by analysts for 2025, and the company forecasts a similar cash burn range for 2026. Get deeper insights into Eve Holding’s financial health and access comprehensive analysis with a InvestingPro subscription, which includes exclusive ProTips and detailed financial metrics.

Eve Holding’s orderbook experienced some churn in the fourth quarter of 2024, with a slight decline in customer counts across different segments. The eVTOL segment saw a decrease by two customers, one due to an acquisition and another due to bankruptcy. Additionally, the number of countries represented in the eVTOL orderbook also dropped by three. Despite these losses, the company secured a new client, Helicopters Inc., which signed up for all three of Eve Holding’s offerings. The orderbook now stands at approximately 2,800 units, down from around 2,900 units at the end of the third quarter in 2024. Based on InvestingPro’s Fair Value analysis, the stock is currently trading near its Fair Value, with analysts setting price targets between $5 and $8.

Fong expressed concerns about the non-binding nature of the orderbook and the observed customer churn, which he believes supports the view of inherent risks. Although he acknowledged Eve Holding’s cost structure advantage and support from BNDES, Fong indicated that more progress is needed, and the company’s story requires further de-risking before changing the rating from Neutral. According to InvestingPro’s Financial Health assessment, Eve Holding currently shows weak overall health scores, with analysts not anticipating profitability this year.

In other recent news, Eve Holding Inc. reported a net loss of $40 million for the fourth quarter of 2024 and $138 million for the full year, highlighting ongoing financial challenges despite a significant improvement in cash position to $3 million from $241,000 in 2023. The company successfully raised $270 million in 2024, boosting its liquidity to $429 million, which is expected to support its operations through 2025 and 2026. Eve Holding plans to initiate the first flight test of its engineering prototype by mid-2025 and has projected a cash burn of $200 million to $250 million for the year. The company maintains the largest order book in the eVTOL sector, with approximately 2,800 aircraft valued at $14 billion. Despite some customer attrition, Eve Holding continues to engage with potential buyers and partners to solidify its market position. The company is also advancing its manufacturing facility in Brazil with a planned investment of $100 million, supported by a long-term facility from the Brazilian Development Bank. Analysts from Raymond (NSE:RYMD) James and Jefferies have shown interest in the company’s cash burn and order book dynamics, reflecting investor focus on Eve Holding’s financial health and strategic progress.

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