Canaccord Genuity lowers Eve Holding stock price target on dilution impact

Published 19/08/2025, 18:54
Canaccord Genuity lowers Eve Holding stock price target on dilution impact

Investing.com - Canaccord Genuity reduced its price target on Eve Holding Inc. (NYSE:EVEX) to $6.75 from $7.00 on Tuesday, while maintaining a Buy rating on the electric aircraft manufacturer. The stock, currently trading at $4.29 with a market capitalization of $1.61 billion, has experienced significant volatility, dropping over 23% in the past week. According to InvestingPro data, technical indicators suggest the stock is currently in oversold territory.

The price target adjustment reflects the dilution impact from Eve’s recent $230 million equity raise, according to the investment firm’s research note.

Despite the lower target, Canaccord continues to view Eve’s relationships with the Brazilian Development Bank and Embraer favorably, noting these partnerships ensure continued test and manufacturing infrastructure in São Paulo.

The firm highlighted that Eve’s improved liquidity position strengthens the company’s ability to execute its planned 2027 ANAC certification and commercialization of its Eve-100 aircraft, with a virtually parallel type certification expected from the FAA.

Canaccord’s $6.75 price target is based on a discounted cash flow analysis through 2035, which incorporates the dilutive effect of the company’s capital raise while maintaining a positive long-term outlook.

In other recent news, Eve Air Mobility has raised $230 million through a registered direct offering of common stock. The company sold 47,422,680 shares at $4.85 per share to investors, including BNDESPAR and Embraer. This capital raise coincides with Eve’s establishment of a dual listing on Brazil’s B3 stock exchange. Additionally, Eve Holding reported a net loss for the second quarter of 2025, with earnings per share coming in at -0.21, missing analyst expectations of -0.164. The earnings result marked a 28.05% negative surprise. In terms of analyst perspectives, BTIG has assumed coverage of Eve Holding with a Neutral rating. This coverage transition is led by analyst Andrew Madrid, maintaining the same stance as the previous analyst.

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