Tuesday, Canaccord Genuity revised its stock price target for Lilium N.V. (NASDAQ:LILM), a company specializing in electric air mobility solutions, to $2.00, down from the previous $3.00, while maintaining a Buy rating. The adjustment follows a recent capital raise by Lilium, which has altered the company's share count and cash balance.
The firm has updated its financial model for Lilium to account for the new capital structure and the resulting changes in the company's estimated capital requirements. Despite the reduced price target, Canaccord Genuity's outlook for Lilium remains positive, with expectations of future equity raises and the company's potential to begin collecting pre-delivery payments from customers within the next few years.
Lilium, which has a backlog of approximately 700 units, including 56 firm orders, is anticipated to receive 30-50% customer pre-delivery payments during the 2025-2026 period. These payments are expected to contribute additional cash receipts to support volume production. Some initial capital has already been secured from Pioneer Edition customers through small pre-delivery payment (PDP) deposits.
The revised $2 stock price target is based on a discounted cash flow (DCF) analysis extending through 2035, as stated by Canaccord Genuity. This new valuation reflects the latest equity raise and its impact on Lilium's financial position, as well as the firm's projections for the company's future cash flows.
InvestingPro Insights
As Lilium N.V. (NASDAQ:LILM) navigates the complexities of the electric air mobility market, recent data from InvestingPro provides additional context to Canaccord Genuity's revised price target. The company's market capitalization currently stands at $553.1 million, reflecting investor sentiment and market conditions. Despite a challenging week with a 21.73% drop in the one-week total return, Lilium holds more cash than debt on its balance sheet, which could be a buffer against short-term market fluctuations.
InvestingPro Tips suggest a mixed financial landscape for Lilium. On one hand, two analysts have revised their earnings upwards for the upcoming period, indicating potential optimism in the company's performance.
On the other hand, Lilium's stock price has experienced significant volatility and the company is not expected to be profitable this year. Moreover, with a Price / Book ratio of 13.75 as of the last twelve months ending Q4 2023, the stock is trading at a high multiple, which could be a point of concern for value-focused investors.
For those looking to delve deeper into Lilium's financials and future prospects, InvestingPro offers a comprehensive suite of tools and additional tips. There are 12 more InvestingPro Tips available for Lilium, which can be accessed at https://www.investing.com/pro/LILM. Readers interested in a detailed analysis can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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