Buy flying cars. Joby Aviation obtains the first purchase rating.


Courtesy of Joby Aviation


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There is a future in flying cars, in a way.


Morgan stanley

is bullish on eVTOL. These are electric airplanes with vertical take-off and landing. These are smaller helicopter-like vehicles that many new startups want to use in ridesharing apps. It’s a bit like an Uber ride in the sky.

Kristine Liwag kicked off the cover of eVTOL maker on Thursday


Joby Aviation

(symbol: JOBY) with a purchase note. The “sky is the limit,” Liwag wrote. She sees an increase of up to $ 60 per share. But there are risks with any disruptive new technology, so overall it takes a more conservative approach. Its official target price is $ 16 per share.

Joby stock is up about 11% early in the session, to around $ 10.69 per share. The


S&P 500

and


Dow Jones Industrial Average

are up about 0.8% and 1.2%, respectively.

This is Joby’s first note, according to Bloomberg. This is one of the reasons for the great reaction. This is the first and only call to stock. And it is bullish. Joby has just finalized its merger with a SPAC, making it a publicly traded company in August. It usually takes a few weeks for Wall Street to increase coverage.

A stock the size of Joby – its market capitalization is over $ 7 billion based on its fully diluted stock count – will typically be covered by eight to 10 analysts.

A lack of hedging and disruptive technology usually means volatility in the stock markets. Joby’s stock was around $ 10 before the PSPC merger closed. It climbed to around $ 13 right after that before dropping back down to less than $ 10 before the new note.

eVTOL – as an industry or an investment – is a bit like commercial space flight. Helicopters have been around forever, like rockets. But the fall in costs allows new applications. (Reusable rockets got SpaceX valued at $ 74 billion in private markets.)

Liwag sees sales drop from zero today to around $ 390 million in 2026 and $ 3.4 billion by 2030. By 2026, Joby is due to receive FAA approvals for his new aircraft. This is expected to happen around 2022. By 2026, the company plans to operate its planes 12 hours a day, of which seven hours will generate sales, with an average flight time of 24 miles.

The average flight should cost people around $ 50 and Joby around $ 20 to operate. All of these assumptions are just the best guesses at this point. EVTOL is new.

Joby isn’t the only player though.


Air mobility of the blades

(BLDE),


Archer Aviation

(ACHR) and


Lilium

(LILM) are three other actions of the eVTOL business. Blade stock is up 0.1% in trading on Thursday. The Lilium share is down almost 2%. Archer shares gained around 1.5%. Blade has three analysts covering its stock. All three are evaluating which stocks to buy. Archer has an analyst who covers his stocks. Benchmark analyst Josh Sullivan values ​​Buy stocks and has a price target of $ 15. Lilium also has an analyst who covers her stocks. Piper Sandler analyst Alex Potter rates Buy stocks. His target price is $ 17.

Overall, Wall Street sees future gains for eVTOL.

Write to Al Root at [email protected]


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