Amid Funding Milestones, Analyst Bets On Vertical Aerospace's Strong Engineering And Design Team

Canaccord Genuity analyst Austin Moeller maintained a Buy rating at Vertical Aerospace Ltd. EVTL with a price target of $16.

Last week, the company reported a third-quarter net loss of $45.7 million, compared to $41.8 million in the same quarter a year ago.

The company has around 25 million Sterling pounds in cash. The new funding round is expected to close in the first quarter of 2025.

The analyst writes about the recent $50 million capital commitment, but the investor focuses on the expected completion of the full capital raise in the first quarter, a key step for VX4's development.

Last month, the term sheet outlined a $50 million funding commitment from Mudrick Capital, with $25 million in upfront funding and an additional $25 million backstop, which can be reduced by third-party funding.

This funding is expected to support the company's Flightpath 2030 Strategy, which aims to position Vertical as a global leader in the eVTOL market by the end of the decade. This strategy includes the ongoing development and certification of the VX4.

Moeller says that he is confident in the company's strong design and engineering team, which is making steady progress with the CAA on the VX4 certification.

The analyst revised estimates for EBITDA loss to $55.6 million from $89.6 million earlier in 2024, $70.7 million from $68.7 million in 2025 and $81.5 million from $80.5 million in 2026.

Price Action: EVTL shares are down 6.53% at $7.38 at the last check Monday.

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