Cantor Fitzgerald stands by its glowing $10 price target for Joby Aviation as the company secures new FAA certifications.
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Joby Aviation, a pioneer in electric vertical takeoff and landing (eVTOL) aircraft, recently received a crucial certification from the Federal Aviation Administration (FAA). This milestone brings the company closer to its objective of launching commercial operations next year.
Despite charting new skies and shaping an emerging industry, Joby Aviation remains a favorite on Wall Street. Positioned as a potential frontrunner in securing FAA approval for commercial flight operations, the company’s stock is poised for further ascent.
Analyst Andres Sheppard of Cantor Fitzgerald is optimistic about the progress made by JOBY in aircraft testing. With pivotal FAA certifications in hand, Sheppard expresses confidence in Joby Aviation’s future success, which is set to capitalize on the burgeoning sustainable air travel market.
The global electric aircraft market is forecasted to experience substantial growth, with analysts predicting a CAGR of 19.8% through 2030, reaching a value of $37.2 billion. As Joby Aviation leads the pack, it is expected to seize a substantial market share before competitors take flight.
Sheppard’s aggressive price target of $10 per share for Joby Aviation reflects a 61% upside potential. Recently reaffirming a “buy” rating on the stock, Sheppard’s bullish outlook underscores the company’s trajectory towards success.
On the Verge of Flight
Two years ago, Joby Aviation obtained its Part 135 Air Carrier & Operator Certificate from the FAA, a critical step in its 2025 business launch timeline. This certification permits JOBY to conduct commercial flights, refining operational procedures for its forthcoming air taxi service.
Of note, the FAA certification process comprises five distinct stages, placing Joby Aviation on the cusp of ultimate approval. The final milestone is securing Type Certification, signaling the FAA’s endorsement for commercialization.
Joby Aviation is currently ahead of rival Archer Aviation, which is also making strides in FAA certifications. Archer’s Midnight aircraft recently achieved a significant milestone with its first transition flight, demonstrating agile flight capabilities akin to a helicopter-airplane hybrid.
Joby Aviation Stock: Soaring High
Sheppard’s $10 price target implies a substantial 61% upside for Joby Aviation stock. At the time of reaffirming the buy recommendation, the stock was trading around $6.50 per share, slightly above the current price of $6.29.
Overall, Wall Street has a consensus price target of $8 per share for Joby Aviation stock, suggesting a potential 30% increase. While JPMorgan Chase raised its price target to $6, maintaining a hold rating, the overall sentiment remains positive.
Investing in Joby Aviation and other eVTOL players offers a rare chance for investors to witness and participate in the birth of an innovative industry. With Joby’s strategic plans for a regional air mobility service utilizing innovative technologies like hydrogen fuel cells, the stock presents a unique opportunity for discerning investors.
Disclaimer: The writer does not have any direct or indirect holdings in the securities discussed in this article.