Bullish indicating open at $55-$60, IPO prices at $37
Tuesday saw Canaccord Genuity affirm its Buy rating on Vertical Aerospace Ltd. (NYSE:EVTL) with a steady price target of $13.50. The aerospace company, currently trading at $5.92, made headlines earlier in the day with a significant advancement in its flight testing program, marking a European first for winged electric vertical take-off and landing (eVTOL) aircraft. According to InvestingPro data, analyst targets for EVTL range from $2.08 to $15.25, reflecting mixed sentiment about the company’s prospects.
Vertical Aerospace’s Chief Test Pilot, Simon Davies, successfully piloted the VX4 eVTOL aircraft from Cotswold Airport in the UK, achieving a milestone wingborne flight. The aircraft ascended to an altitude of 2,000 feet using its wings for lift and cruised through the British countryside at approximately 100 knots (115 mph) before landing back on the runway. This test is part of Phase 3 in Vertical’s wingborne flight testing series. With a market capitalization of $501 million, Vertical Aerospace maintains a strong balance sheet with more cash than debt, as revealed by InvestingPro’s financial health analysis.
The company’s recent accomplishment comes on the heels of the UK Civil Aviation Authority (CAA) extending Vertical’s Permit to Fly. This extension was granted after the approval of around 20,000 certification documents. Vertical Aerospace now holds the distinction of being the first eVTOL to complete a piloted wingborne flight in European open airspace and the sole eVTOL developer operating under a Design Organisation Approval (DOA) from the CAA.
The CAA, in partnership with the European Union Aviation Safety Agency (EASA), is working towards dual-certification of the aircraft in the UK and Europe. This certification aims to meet the highest commercial aircraft safety standards, known as 10-9.
Looking ahead, Vertical Aerospace has set its sights on achieving a full transition flight with its second VX4 Aircraft in the second half of 2025. Moreover, the company aims to expand the aircraft’s performance to reach a targeted top speed of 150 mph, further pushing the boundaries of eVTOL capabilities. While currently unprofitable, analysts predict the company will turn profitable this year, with an EPS forecast of $4.95 for 2025. For deeper insights into Vertical Aerospace’s financial health and growth potential, including 14 additional exclusive ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, Vertical Aerospace has achieved a significant milestone with the successful completion of the first-ever piloted wingborne flight of its VX4 electric vertical take-off and landing (eVTOL) aircraft in European open airspace. This marks a critical step in the company’s certification journey, with the UK Civil Aviation Authority overseeing the test. Vertical Aerospace is on track to demonstrate the VX4’s operational capabilities for passenger service by 2025. In analyst updates, Canaccord Genuity has maintained a Buy rating on Vertical Aerospace, with a price target of $13.50, citing ongoing advancements in aircraft development. Meanwhile, Raymond (NSE:RYMD) James has kept its Market Perform rating, expressing concerns over the company’s capital access and certification timeline.
Additionally, Vertical Aerospace has expanded its partnership with Honeywell (NASDAQ:HON) to accelerate the certification and production of the VX4, focusing on integrating advanced flight control systems to meet stringent safety standards. The collaboration aims to certify these systems to the UK Civil Aviation Authority’s standards, positioning the VX4 for potential global certification. Moreover, Vertical Aerospace has bolstered its Board of Directors with the addition of three new members, enhancing its financial and commercial strategies as the company progresses toward commercialization. These strategic appointments aim to guide the company towards achieving cash break-even by 2030. Vertical Aerospace continues to advance its piloted test flight program, with approximately 1,500 pre-orders for the VX4 from major airlines, indicating strong market interest.
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