Vertical Aerospace’s Strong Design and Engineering Team Boosts Confidence
As the electric vertical takeoff and landing (eVTOL) market continues to gain traction, Vertical Aerospace Ltd. (NYSE:EVTL) is poised to take a leading role. Despite reporting a third-quarter net loss of $45.7 million, the company’s strong design and engineering team has caught the attention of Canaccord Genuity analyst Austin Moeller.
A Key Step Forward: $50 Million Capital Commitment
Moeller maintained a Buy rating on Vertical Aerospace with a price target of $16, citing the recent $50 million capital commitment from Mudrick Capital as a significant milestone. This funding, which includes $25 million in upfront funding and an additional $25 million backstop, is expected to support the company’s Flightpath 2030 Strategy.
Flightpath 2030: A Global Leader in eVTOL by 2030
The Flightpath 2030 Strategy aims to position Vertical as a global leader in the eVTOL market by the end of the decade. This ambitious plan includes the ongoing development and certification of the VX4, which Moeller believes is making steady progress with the CAA.
Revised Estimates Reflect Confidence in Vertical’s Progress
Moeller revised his estimates for EBITDA loss, citing confidence in the company’s strong design and engineering team. The revised estimates include $55.6 million in 2024, $70.7 million in 2025, and $81.5 million in 2026.
Cash Position Remains Strong
With around 25 million Sterling pounds in cash, Vertical Aerospace is well-positioned to continue investing in its Flightpath 2030 Strategy. The new funding round is expected to close in the first quarter of 2025, providing a significant boost to the company’s cash position.
Price Action: EVTL Shares Down 6.53%
EVTL shares were down 6.53% at $7.38 at the last check on Monday, despite the positive news surrounding the company’s funding milestones and strong design and engineering team.
Leave a Reply