On Thursday, Canaccord Genuity (TSX:CF) maintained a Buy rating and a $2.00 price target on shares of Lilium N.V. (NASDAQ: LILM), a company developing electric vertical take-off and landing (eVTOL) aircraft. The firm's positive outlook is based on recent affirmations by the company regarding its flight-testing schedule and its 2026 commercialization goal.
Lilium has made progress with its prototype aircraft, known as MSN 1 and MSN 2, which are being used for ground testing and early manned flight testing. These prototypes are utilizing batteries from a U.S.-based supplier. Meanwhile, the MSN 3 prototype is expected to begin test flights later in 2025 using a state-of-the-art silicon-dominant anode lithium battery developed by InoBat and Gotion High-Tech.
The analyst from Canaccord Genuity highlighted the importance of the new 330 Wh/kg battery technology in making Lilium's Jet competitive in the market. This technology is expected to enable the aircraft to reach an approximate range of 110 miles on a single charge, positioning it as a rival to business jets and executive helicopters.
The design of the Lilium Jet includes innovative placement of battery modules and packs within the fuselage, between an interior and exterior fairing wall, to optimize cabin space. The battery packs are designed to be cooled and vented by a Micro Vapor Cycle System provided by Honeywell (NASDAQ:HON).
Canaccord Genuity's continued support for Lilium N.V. reflects confidence in the company's technological advancements and its potential to meet its projected timeline for bringing the eVTOL aircraft to the commercial market.
In other recent news, electric aircraft manufacturer Lilium has made significant strides in its operations. The company recently debuted its Lilium Jet in Houston, revealing a new option for regional travel. The first customer deliveries are expected to start in 2026, with the first piloted flight planned for early 2025. The company also completed the first phase of integration testing for the Lilium Jet's electrical power system, a vital step towards flight conditions approval and type-certification.
In terms of strategic partnerships, Lilium has joined forces with Groupe ADP (NASDAQ:ADP) to develop a network of vertiports, aiming to establish Paris as a key hub for regional electric aviation. The company has also collaborated with the General Authority of Civil Aviation of Saudi Arabia to integrate electric Vertical Take-Off and Landing aircraft into Saudi Arabia's transportation and airspace systems by 2026.
Financially, Lilium's Q1/24 cash burn increased by 53% due to payments made to aerospace suppliers, reaching €94.7 million. Despite this, the company managed to secure $114 million in funding to support its operations and upcoming first manned flight test. Analyst firm Canaccord Genuity maintains a Buy rating for Lilium's shares. These are the latest developments for Lilium.
InvestingPro Insights
As Canaccord Genuity maintains its bullish stance on Lilium N.V. (NASDAQ: LILM), InvestingPro data and tips provide additional context for investors considering this eVTOL innovator. With a market capitalization of $455.78 million, Lilium is navigating a challenging financial landscape, reflected in its negative P/E ratio of -0.11 and a high Price / Book multiple of 11.01 as of the last twelve months ending Q4 2023. These metrics underscore the company's current lack of profitability, which is also echoed by a significant operating loss of -$299.67 million over the same period.
Two InvestingPro Tips also paint a picture of Lilium's financial health. Firstly, the company holds more cash than debt on its balance sheet, which is a positive sign for liquidity. However, it is quickly burning through cash, indicating that its current capital reserves may not sustain long-term operations without additional funding or revenue streams. Additionally, with analysts not expecting the company to be profitable this year and a valuation that implies a poor free cash flow yield, investors should weigh the potential for technological success against financial realities.
For those looking to dive deeper, there are over 10 additional InvestingPro Tips available, which could further inform investment decisions. These tips, alongside real-time data, can be accessed through InvestingPro's platform for a comprehensive analysis of Lilium N.V.'s financial and market position.
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