In a report released yesterday, Jason Helfstein from Oppenheimer maintained a Buy rating on Blade Air Mobility (BLDE – Research Report), with a price target of $6.00.
Jason Helfstein has given his Buy rating due to a combination of factors that point towards strong financial performance for Blade Air Mobility. The primary drivers behind this rating include the company’s improving margins, its first EBITDA-positive quarter, and a consistent focus on cost control. The firm’s passenger demand remains robust, which is complemented by a stable medical EBITDA. Any weaknesses in the charter segment have been balanced by higher per-seat sales margins. Helfstein also highlighted that the integration of a European acquisition, although currently a drag on gross margins, is expected to enhance profitability.
The analyst anticipates a 4Q gross margin improvement of 181 basis points year-on-year, outpacing the 154 basis point increase in 3Q. He also noted that management is likely to provide targets for 2024 and 2025 in the next quarter, suggesting improved EBITDA visibility. Blade Air Mobility’s Sum of the Parts valuation is in line with Uber, assuming a 6x 2024 estimated passenger gross profit. Despite a 10% discount to TMDX and a 15% holding company discount, the target implies a 33% premium to peers given that the company is growing its EBITDA 95% faster from 2022 to 2025.
In another report released on October 27, J.P. Morgan also maintained a Buy rating on the stock with a $5.00 price target.
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Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BLDE in relation to earlier this year.
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Blade Air Mobility (BLDE) Company Description:
Experience Investment Corp is a blank check company.
Read More on BLDE:
- Blade Air Mobility Reports Financial Results for the Third Quarter Ended September 30, 2023
- Blade Air Mobility reports Q3 revenue $71.442M, consensus $68.69M.
- Blade Air Mobility to Present at Baird 2023 Global Industrial Conference
- Blade Air Mobility Announces Opening of Investor Q&A Platform Ahead of its Release of Fiscal Third Quarter 2023 Financial Results
- Blade Air Mobility Announces Date for Fiscal Third Quarter Ended September 30, 2023 Earnings Release Conference Call
