Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Morgan Stanley has raised its price target on Joby Aviation Inc (NYSE:JOBY) to $15.00 from $7.00 while maintaining an Equalweight rating on the stock. The company, currently trading at $17.37 with a market capitalization of $14.87 billion, has seen its shares surge over 200% in the past year.
The significant price target increase comes as Morgan Stanley adjusts its financial estimates for the electric vertical takeoff and landing (eVTOL) aircraft manufacturer.
Morgan Stanley analyst Kristine Liwag noted the firm is "meaningfully changing our financial estimates for the company to reflect lower aircraft deliveries, but better free cash flow on modestly improved economics and significantly lower capex."
Despite the substantial increase in price target, Morgan Stanley has maintained its Equalweight rating on Joby Aviation shares.
The revised outlook suggests Morgan Stanley sees improved financial efficiency for Joby Aviation even with reduced production expectations.
In other recent news, Joby Aviation announced the pricing of its public offering, raising approximately $513.9 million by selling 30.5 million shares at $16.85 each. This follows the company’s earlier announcement of its intention to offer $500 million in common stock to fund aircraft certification, manufacturing, and commercial operations. The offering, which includes a 30-day option for underwriters, Morgan Stanley, to purchase an additional 4.575 million shares, is expected to close soon, pending customary conditions.
Additionally, Joby Aviation showcased its electric air taxi capabilities at the California International Airshow, conducting demonstration flights that highlighted vertical takeoffs, landings, and aerial maneuvers. These demonstrations are part of Joby’s ongoing flight exhibitions with ANA Holdings in Japan, which are scheduled to continue through mid-October. In another significant development, Joby and ANA conducted the first public flight demonstrations of the air taxi at Expo 2025 in Japan, marking a milestone in the region’s air taxi ecosystem. Over a 13-day period, more than 20 flights are planned, featuring the aircraft in ANA’s livery.
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