Canaccord Genuity has adjusted its price target for Eve Holding Inc. (NYSE: NYSE:EVEX), a company specializing in electric vertical take-off and landing (eVTOL) aircraft.
The price target has been reduced to $7.00 from the previous $8.50, while the firm retains a Buy rating on the stock.
The reduction in the price target reflects a recalibration by Canaccord Genuity due to the lower valuations currently seen across the eVTOL sector. Despite this adjustment, the analyst emphasized the company's strong position in the industry, noting Eve's significant backlog of 2,900 units, which is reported to be the largest in the sector.
Eve, which is supported by the established aerospace manufacturer Embraer, is actively progressing in the development of its eVTOL aircraft. This development is aimed at serving core urban air mobility (UAM) applications.
The analyst highlighted that Eve and Embraer are prepared to launch their platform by late 2026, leveraging Embraer's extensive global maintenance, repair, and overhaul (MRO) infrastructure.
The report also mentioned that the discount rate in the firm's discounted cash flow (DCF) analysis has been adjusted to 11.3%, reflecting the sector's valuation changes. Despite the adjustments and the competitive landscape, Canaccord Genuity remains confident in Eve's capabilities.
The firm underscored Eve's strong financial position, the full support from Embraer — the third-largest global aircraft original equipment manufacturer (OEM), and the steady progress in design and certification with aviation regulatory bodies ANAC and the FAA.
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