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On Friday, Cantor Fitzgerald analyst Andres Sheppard reaffirmed an Overweight rating with a $5.00 price target on Eve Holding Inc. (NYSE:EVEX), a company specializing in electric vertical takeoff and landing (eVTOL) aircraft. Currently trading at $3.28, the stock sits well below the consensus analyst target range of $5-8, according to InvestingPro data. Sheppard recalled the July 21, 2022, unveiling of EVE’s full-scale eVTOL prototype, which was constructed at the Embraer test facility in Gaviao Peixoto, Sao Paulo.
EVE’s eVTOL aircraft is designed with eight rotors, two empennages, and one pusher propeller, enabling it to carry up to four passengers plus a pilot for trips of up to 60 miles (approximately 100 kilometers). The aircraft’s prototype is currently unmanned, and EVE’s management has set a target to begin its test-flight campaign by mid-2025. The initial phase will involve tethered hover flights, with subsequent tests gradually increasing in height and power.
As part of its certification process, EVE plans to utilize five prototypes, with the option to add a sixth test aircraft if necessary. This strategic approach aims to ensure thorough testing and validation of the eVTOL technology before it enters service.
EVE’s progress in the eVTOL industry represents a significant step towards the future of urban air mobility. With the reaffirmed price target and rating, Cantor Fitzgerald signals confidence in the company’s direction and potential within the aviation market.
In other recent news, Eve Holding Inc. reported a net loss of $40 million for the fourth quarter and $138 million for the entire year of 2024. Despite these losses, the company successfully raised $270 million during the year, improving its liquidity to $429 million. Jefferies analyst Sheila Kahyaoglu adjusted the price target for Eve Holding to $6.00 from $7.00, while maintaining a Buy rating, based on the company’s 2024 cash usage report and its future cash burn projections. BTIG analyst Marvin Fong maintained a Neutral rating, expressing concerns over the company’s non-binding order book and customer churn, despite acknowledging the company’s increased liquidity and cost structure advantage.
Eve Holding’s order book stands at approximately 2,800 units, a decrease from the previous quarter due to customer churn, but it remains the largest in the eVTOL sector. The company plans to address its projected cash burn of $200 million to $250 million in 2025 with its current liquidity and financing arrangements. Additionally, Eve Holding secured new clients, such as Helicopters Inc., which signed up for all three of the company’s offerings. The company is on track to initiate the first flight test campaign of its engineering prototype by mid-2025 and continues to work on its manufacturing facility in Tabate, Brazil, with a total planned investment of $100 million.
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