Vertical Aerospace Ltd. (EVTL) PT Raised to $16 at Canaccord Genuity

Canaccord Genuity analyst Austin Moeller raised the price target on Vertical Aerospace Ltd. (NYSE: EVTL) to $16.00 (from $15.00) while maintaining a Buy rating.

The analyst commented: "We believe today’s announcement represents a significant retirement of risk for EVTL’s shareholders and supports the company’s “Flightpath 2030” strategy to establish itself as a leading global OEM for eVTOLs delivering units at production volumes. Management indicated that the established terms for the company’s imminent offering gives investors and aerospace suppliers for its aircraft (in particular the still-unnamed EPU suppliers) confidence that it will be able to establish a significant capital buffer during the ongoing flight testing and certification process in 2025. Moreover, the company has additional optionality remaining on its $180M mixed shelf to be strategic in raising capital as needed. As such, investors can now be more comfortable that the company will not reach an additional pressing liquidity event at the end of 2025 with the capital raise now being committed to by key investors (e.g., Mudrick and Fitzpatrick). We have adjusted our model to reflect the expected impact of the equity raise, along with the 50% debt reduction (with the remaining $130.2M subject to 10% cash interest expense after December 15, 2024). We have revised our discount rate on our DCF (through 2035) to 11.5% and we are raising our PT to $16."

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