Joby Aviation Finally Gets an Analyst Rating, Implying Huge Upside

Have you ever considered riding in a flying taxi? California-based electric aircraft maker Joby Aviation (NYSE:JOBY) is pioneering the science of short-distance flight – yet, JOBY stock can’t seem to get off the ground.

Person holding smartphone with logo of startup and aerospace company Joby Aviation (air taxi) on screen
Source: T. Schneider /

Even after chopping around like helicopter blades, the stock keeps coming back to $10. In fact, as recently as Sept. 24, the share price was $10.30.

Joby Aviation is a fascinating business. It’s actually the first U.S.-based eVTOL (electric vertical takeoff and landing) company listed on a public market to trade on the New York Stock Exchange. eVTOL vehicles are electric, and they function similarly to drones.

Perhaps, then, there’s an opportunity here that the investment community is missing out on. At least one notable Wall Street analyst is taking notice now, though – and she’s setting her sights on a high price target.

A Closer Look at JOBY Stock

Let’s go back to the beginning, which really wasn’t very long ago.

JOBY stock opened for trading on the NYSE after Joby Aviation reverse-merged with a special purpose acquisition company (SPAC) known as Reinvent Technology Partners.

As you may be aware, SPAC stocks tend to start off at around $10. What’s odd about this particular stock is that it keeps returning to that price.

Getting back to the SPAC, Reinvent Technology Partners was backed by Microsoft’s (NASDAQ:MSFT) LinkedIn founder Reid Hoffman and Zynga (NASDAQ:ZNGA) founder Mark Pincus.

It’s the same shell company that brought insurance technology company Hippo (NYSE:HIPO) to the market.

With a pedigree of that caliber, you’d think that Joby Aviation’s market debut would have been a huge success, and the company should have a dozen ratings on Wall Street by now.

Yet, that isn’t what actually happened. JOBY stock was largely ignored by the financial analysts as the share price flopped around aimlessly.

The stock kept coming back to $10 even after careening towards $8 on the low end, and $14 on the high end. Clearly, this isn’t an investment for anyone who’s averse to volatility.

First-Mover Advantage

What could propel JOBY stock higher? In the long run, it could be the company’s status as a first mover in an exciting industry.

As Joby Aviation’s investor presentation boasts, the company has already completed over 1,000 test flights. This means that any newcomers to the flying taxi market will probably have to play catch-up.

The company also claims to be the “First and only eVTOL to sign
G-1 with FAA.”

More precisely, though, Joby Aviation expects to achieve G-1 certification with the Federal Aviation Administration in 2022.

Along with all of that, Joby Aviation declares that it’s the “First to achieve US Air Force airworthiness.”

And for all of you ESG investors out there, the company suggests that its aircraft produce “Zero operating emissions.”

The Sky’s the Limit

As I alluded to earlier, Joby Aviation was mostly ignored by Wall Street, but finally received a rating and a price target.

Thankfully, Morgan Stanley analyst Kristine Liwag seems to favor this company. Indeed, she sees upside as high as $60 per share for JOBY stock.

Now, don’t get the wrong idea. Liwag isn’t necessarily expecting the stock to hit $60 anytime soon.

Her stated price target for JOBY stock is $16, which still implies considerable upside.

Liwag also assigned a “buy” rating to the stock, while declaring that the “sky’s the limit.”

Bloomberg stated that this was Joby’s first and only rating, but hopefully more will be coming in the near future.

The Bottom Line

Stocks representing new technologies tend to wobble and flop around wildly. That’s just how it goes.

So, there’s definitely risk involved if you’re planning to invest in Joby Aviation.

However, if you see a strong future for flying taxis, it appears that Joby Aviation has the first-mover advantage.

And at least, for the time being, the bulls will have one optimistic analyst on their side.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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