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On Tuesday, Canaccord Genuity analysts reiterated their Buy rating and maintained a $12.00 price target on Joby Aviation Inc (NYSE: NYSE:JOBY), representing the highest among analyst targets ranging from $4 to $12. The reaffirmation follows Toyota ’s recent investment in Joby Aviation, which involved the acquisition of 49.7 million shares at a purchase price of $5.03 per share. This investment represents the first $250 million tranche of a total expected $500 million investment in 2025. According to InvestingPro data, Joby maintains a strong balance sheet with a current ratio of 17.72, indicating robust liquidity.
Last week, Toyota’s investment led to a nearly 29% rise in Joby Aviation’s stock price in one day, contributing to an impressive 54% return over the past year. The investment was initially announced in October 2024, with Joby’s management expecting the first tranche to be disbursed in the second quarter of 2025. The funding commitment from Toyota is seen as a strategic partnership that may eventually lead to the transfer of contract manufacturing of Joby’s S4 eVTOL to Toyota in Ohio. InvestingPro analysis suggests the stock is currently overvalued based on its proprietary Fair Value model.
Joby Aviation’s management has clarified that Toyota’s agreement requires approval for any defense-related sales of hardware. Toyota has not blocked any contracts from the Department of Defense so far and supports ongoing flight testing at Edwards Air Force Base. These tests, which include engine and battery pack shutoff during flight, continue to provide valuable data for both the Air Force and the Federal Aviation Administration.
Despite Toyota’s investment, Joby’s S4 eVTOL was not selected for a hybrid VTOL program under development by defense prime Anduril and airframe partner Archer Aviation. Canaccord Genuity analysts have adjusted their dilution assumptions in their earnings model based on the purchase price and share issuance related to Toyota’s investment, maintaining their $12 price target based on a discounted cash flow analysis through 2035. For deeper insights into Joby’s financial health and growth prospects, including 13 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, Joby Aviation has made significant strides with two major developments. The company announced a Memorandum of Understanding with Abdul Latif Jameel, potentially leading to the delivery of up to 200 electric aircraft in Saudi Arabia, valued at approximately $1 billion. This agreement aligns with Saudi Arabia’s Vision 2030, aiming to enhance socio-economic growth through innovative transportation solutions. In another development, Joby Aviation secured a $250 million investment from Toyota Motor (NYSE:TM) Corporation. This funding will be used for the certification and commercial production of Joby’s electric air taxis, highlighting Toyota’s confidence in Joby’s technology and business model.
Analysts have responded positively to these developments. Cantor Fitzgerald reiterated its Overweight rating for Joby Aviation, maintaining a price target of $9.00, reflecting confidence in the company’s growth prospects. Similarly, H.C. Wainwright maintained a Buy rating with the same price target, underscoring the strategic importance of Toyota’s investment. These recent developments indicate Joby Aviation’s growing momentum in the urban air mobility sector.
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