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Investing.com -- Bank of America initiated coverage on EHang Holdings with a Buy rating and a price target of $26 per American depositary share in a note this week.
The bank highlighted the company’s leadership in China’s emerging electric vertical takeoff and landing (eVTOL) market.
Calling EHang a “pioneer eVTOL aircraft producer in China,” BofA analysts pointed to its status as the country’s top eVTOL brand according to an SMG Consulting survey.
The firm currently sells pilotless passenger and cargo-grade aircraft, led by the EH216-S, which has a cruising speed of 90 km/h and a price tag of 2.4 million yuan.
“[It] is currently China’s only selling eVTOL model,” BofA wrote, noting the aircraft received production certification from China’s aviation regulator in 2024.
BofA expects EHang to sustain a dominant position over the next five years due to its “advanced technology and licensure head start.”
Furthermore, the analysts forecast China’s eVTOL shipments will grow at a 62% compound annual rate to 4,000 units by 2030, driven primarily by demand in the tourism sector and policy support from local governments.
The bank also noted that EHang’s backlog stood at over 1,000 units as of April 2025, and the company is targeting 78% annual growth in deliveries from 2024 through 2027.
BofA believes the firm will maintain a 100% market share in China through 2027, citing “the strict CAAC airworthiness process” as a key barrier to entry for competitors.
“Our PO of USD26/ADS is derived via the average of 8x 2026E P/S and DCF valuation,” BofA said. Risks to the outlook are said to include potential delays in regulatory approvals and mechanical issues.