Vertical Aerospace: Canaccord Genuity maintains Buy, raises PT to $11 from $10

Vertical Aerospace: Canaccord Genuity maintains Buy, raises PT to $11 from $10

Vertical Aerospace (NYSE: EVTL) has received a positive investment outlook from Canaccord Genuity, which maintains a Buy rating and raises its price target to $11 from $10. This move comes after Vertical's strong first-quarter results and the company's continued progress towards certification and commercialization of its electric aircraft.

In its Q1 2025 update, Vertical reported advancements in its piloted wingborne flight test program, including the delivery of a third full-scale VX4 prototype. The company also announced a 1,000-mile hybrid-electric VTOL program, which aims to serve defense, logistics, and wider commercial applications. Additionally, Vertical signed a long-term partnership with Honeywell to certify and produce critical elements of the VX4's flight control and aircraft management systems Vertical Aerospace Provides First Quarter 2025 Operating Update, Demonstrating Momentum Towards Certification and Commercialisation^[1].

Vertical's CEO, Stuart Simpson, stated that 2025 is shaping up to be a transformational year for the company. The company anticipates receiving approval from the UK Civil Aviation Authority (CAA) to start piloted wingborne flight tests in Q2, another significant step in its flight test program. The final stage of the flight test program, the piloted transition flight, is scheduled to be completed in the second half of 2025 Vertical Aerospace Provides First Quarter 2025 Operating Update, Demonstrating Momentum Towards Certification and Commercialisation^[1].

The company also reported strong financial results, with cash and cash equivalents totaling £69 million ($89 million) as of March 31, 2025. Vertical expects these funds to support operations into the fourth quarter of 2025 and maintain industry-leading capital efficiency. The company expects net cash outflows from operating activities for the next 12 months of approximately £90 million ($120 million), primarily to fund the assembly and testing of the VX4 Vertical Aerospace Provides First Quarter 2025 Operating Update, Demonstrating Momentum Towards Certification and Commercialisation^[1].

Canaccord Genuity's positive outlook is based on Vertical's strong progress in its flight test program, strategic partnerships, and financial health. The investment bank believes that Vertical's ability to deliver a scalable, certifiable aircraft to the global market will drive growth and profitability in the future.