In a report released on March 8, Austin Moeller from Canaccord Genuity maintained a Buy rating on Eve Holding (EVEX – Research Report), with a price target of $9.00.
Austin Moeller’s rating is based on the progress and potential of Eve Holding’s development in the emerging urban air mobility market. The company’s strong cash management and strategic use of Embraer’s resources have led to a lower-than-expected cash burn in 2023. Furthermore, the effective delay in payments to hardware suppliers and the cost synergies achieved underscore the company’s prudent financial stewardship. Eve Holding’s ambitious timeline for the assembly and testing of its prototype eVTOL aircraft, coupled with a sizeable order backlog, positions it favorably within the industry.
Moreover, Moeller emphasizes the significance of Eve’s extensive order backlog valued at $8.6 billion, which is anticipated to provide substantial financial support following the near-term period. The company’s robust liquidity, inclusive of undrawn credit facilities, offers a strong financial foundation to weather the substantial cash use expected in 2024, primarily due to prototype development and preparations for manufacturing. With an industry-leading position in terms of orders and a strategic advantage in maintenance, repair, and overhaul (MRO) services through Embraer’s global facilities, Eve Holding is poised to capture a significant market share post-certification, justifying the Buy rating and the $9 price target.
In another report released on March 8, Jefferies also maintained a Buy rating on the stock with a $7.00 price target.
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Eve Holding (EVEX) Company Description:
Zanite Acquisition Corp is a blank check company.
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