Goldman raises target price to $30.50 on positive outlook for EHang (EH.US)

Goldman released a research report stating that it is constructive on EHang Holdings (EH.US), an early entrant in the eVTOL (electric vertical takeoff and landing) industry, which will benefit from the expanding eVTOL ecosystem in China and abroad. Goldman maintained an "buy" rating on EHang and raised its 12-month target price to US$30.50 from US$26.90, reflecting the firm's optimism about EHang's commercialization in the eVTOL market and its expansion of operations in multiple cities in China. The firm noted that EHang's flagship product, the EH216-S autonomous passenger aircraft, has received a type certificate (TC) and production license (PC) from the Civil Aviation Administration of China, and its operation certificate (OC) submitted by its subsidiaries, Guangdong EHang General Aviation Co., Ltd. and Hefei Hechi Aviation Co., Ltd. in July last year, may also be approved in 2025. It said that this is a significant milestone for EHang's commercial operation of EH216-S in sightseeing/transportation and can accelerate the delivery and orders to other customers. In addition to the progress of operation certificate (OC), EHang is also continuing to expand to new cities to promote eVTOL and educate consumers. It is known that EHang's EH216-S completed its maiden flight at Longhua Helicopter Airport in Xuhui District, Shanghai in January, indicating that the company is targeting future commercial operations in Shanghai. Similarly, in January, EHang announced the opening of its urban air mobility demonstration (experience) center in Luohu Sports and Leisure Park, Shenzhen, which is the world's first EH216-S flight takeoff and landing point designed with an automated vertical takeoff and landing platform. Goldman noted that EHang expects its fourth-quarter revenue to reach Rmb162mn, up 20% from the guided target of Rmb135mn. The company's management attributed the revenue expectation to strong demand for its flagship product, the EH216-S autonomous passenger aircraft. Goldman raised its profit forecasts for 2025-2027 by 1%, 6% and 9%, respectively, mainly due to the increase in revenue from EH216-S and the broader commercial applications of eVTOL after the operation certificate (OC) is approved, which will accelerate the delivery of EH216-S.