On Wednesday, Canaccord Genuity (TSX:CF) analysts increased their price target on Joby Aviation Inc (NYSE:JOBY) shares to $11.50, up from the previous $9.75.
The firm continues to recommend a Buy rating for the stock. The analysts cited Joby Aviation's strong position in the sector, noting that the company is considered one of the leaders in the race to commercialize electric vertical take-off and landing (eVTOL) air transit networks.
Joby Aviation ended 2024 by strengthening its financial position, securing an additional $232 million in liquidity from a recent equity raise. The company also announced a $300 million at-the-market (ATM) offering to be completed in the future. Additionally, Joby's partnership with Toyota (NYSE:TM) was reinforced with a $500 million equity capital commitment, with $250 million expected to be received in 2025.
"Joby is the best-capitalized eVTOL manufacturer following the recent equity raises and Toyota commitment," the analysts said.
The significant cash reserves are set to support the company's plans to increase production at its Dayton, Ohio facility once the aircraft receives certification from the Federal Aviation Administration (FAA), which is anticipated in 2026.
Recently, Joby completed static load testing of a major aerostructure, the tail, for credit. This marks a milestone in the company's progress towards building and flying the final conforming aircraft design within the year. Canaccord Genuity analysts believe that the maturation of the full-scale production aircraft and for-credit flight testing by FAA pilots are key events that could positively influence the stock in the near term.
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