Eve Holding stock price target raised to $7.50 from $6.75 at Canaccord Genuity

Investing.com - Canaccord Genuity raised its price target on Eve Holding Inc. (NYSE:EVEX) to $7.50 from $6.75 on Thursday, while maintaining a Buy rating on the urban air mobility company. The stock, currently trading at $4.80, has shown strong momentum with a 33% gain over the past six months, though it remains well below its 52-week high of $7.70.

The firm cited Eve’s strong position, alongside parent company Embraer, to support customer airline operations with aftermarket service and support post-delivery as a key factor in the decision.

Canaccord adjusted its discounted cash flow model to reflect higher production of batteries and aftermarket service revenues through 2035, along with a 12.1% discount rate.

The research firm noted that Eve still needs to demonstrate execution on key flight milestones expected later in 2025 and its demonstration flight campaign with ANAC from 2026-2027.

With a current market capitalization of approximately $1.5 billion, Canaccord believes Eve’s valuation could approach levels of its peers following initial test flights of the Eve-100, which could trigger additional order conversions and pre-delivery payments from its 28 different OEM customers worldwide.

In other recent news, Eve Holding Inc. has raised $230 million through a registered direct offering of common stock. This capital raise coincides with the company’s new dual listing on Brazil’s B3 stock exchange. Cantor Fitzgerald has reiterated its Overweight rating on Eve Holding, maintaining a $7.00 price target, following the company’s Analyst Day where certification progress and commercialization strategies were discussed. Meanwhile, Canaccord Genuity has adjusted its price target for Eve Holding to $6.75 from $7.00, citing the dilution impact from the recent equity raise, though it continues to hold a Buy rating.

In addition, Eve Holding’s subsidiary, Eve UAM, LLC, has entered into a Master Services Agreement with Embraer S.A. to support the development of electric vertical takeoff and landing aircraft (eVTOLs). Embraer will assist with production processes and plant operations at Eve’s facility in Taubaté, Brazil. BTIG has assumed coverage on Eve Holding with a Neutral rating, maintaining the stance of the previous analyst. These developments highlight the company’s ongoing efforts in capital raising and strategic partnerships.

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