Bullish indicating open at $55-$60, IPO prices at $37
Tuesday, May 13, 2025—Vertical Aerospace Ltd. (NYSE:EVTL), currently trading at $4.84 with a market cap of $412 million, has maintained its Market Perform rating according to Raymond (NSE:RYMD) James, despite the announcement of a new hybrid-electric VTOL program. The new initiative, which promises a 1,000-mile range, aims to expand the company’s market reach. The hybrid powertrain has been in development for 18 months and is set to undergo flight testing in the second quarter of 2026 after one of the VX4 prototypes is retrofitted. According to InvestingPro analysis, the stock has shown significant momentum with a 16% return over the last week.
On Monday, Vertical Aerospace revealed its ambitious plans, which include continuing the current cash burn rate through the first quarter of 2026. While InvestingPro data shows the company holds more cash than debt and maintains a healthy current ratio of 2.56, it’s quickly burning through available resources. The company’s eVTOL program milestones for 2025 remain unchanged, but increased activities related to certification are anticipated from the second to the fourth quarter of 2026. The certification for the hybrid-electric VTOL by the U.K. CAA/EASA is slated to follow that of the eVTOL version (YE28).
Raymond James has highlighted concerns regarding Vertical Aerospace’s access to capital, especially considering the current economic climate and the company’s limited cash reserves, which are estimated to last approximately nine months. The later certification timeline also raises concerns for the firm.
Analysts from Raymond James suggest that potential investors should look for progress in fundraising, alongside the flight testing and public demonstrations of the second and third prototypes, before adopting a more constructive view of the stock. Additionally, they note that positive developments such as defense contract wins or significant battery system sales could potentially accelerate Vertical Aerospace’s revenue timeline and offer a more favorable risk-reward scenario.
In other recent news, Vertical Aerospace has announced several strategic developments. The company reported a net cash usage of approximately $100 million for 2024, with projections of $110-$125 million for 2025, and highlighted its plans to be fully funded through 2025. Vertical Aerospace is aiming for the certification of its VX4 eVTOL aircraft by 2028, with plans to open its order book in 2025. Additionally, Vertical Aerospace has expanded its partnership with Honeywell (NASDAQ:HON) to accelerate the certification and production of its VX4 aircraft, a collaboration that could result in a contract value of approximately $1 billion over the next decade.
In a move to strengthen its leadership, Vertical Aerospace appointed three new board members, James Keith Brown, Kris Haber, and Carsten Stendevad, to enhance its financial and commercial strategies. The company also hired experienced test pilot Paul Stone to bolster its flight test program, as it progresses with the assembly of its third VX4 prototype. Furthermore, Vertical Aerospace adopted the Combined Charging Standard for its VX4 aircraft, aligning with industry peers to establish a universal fast-charging infrastructure for eVTOLs.
These developments reflect Vertical Aerospace’s ongoing efforts to advance its technology and market presence in the electric aviation sector. The company is also exploring new market opportunities, including potential military and defense applications, to diversify its revenue streams. Vertical Aerospace’s leadership team, with experience from top-tier automotive and aerospace companies, is driving these initiatives as part of its strategic goals.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.