Bernstein SocGen Group analysts downgraded Surf Air Mobility Inc (SRFM) from Outperform to Market Perform with a price target of $0.40 (from $3.62).

The analysts comment: "SRFM is working to electrify aircraft (beginning with a hybrid-electric powertrain and an existing airframe to expedite bringing a product to market) and build a digital marketplace for Regional Air Mobility (RAM) players and customers in an effort to meet unmet
market needs in the RAM space. Advances in technology have the potential to unlock a significant addressable market for Regional Air Mobility ($12-18B by 2035).

Bad capital structure. The company is burning $16-18M a quarter while running a quarterly cash balance in the single digit range. While the company has committed financing through the GEM facility (as of end of 1Q24, SRFM still has the ability to draw $90 million in
committed draws and up to $296 million in follow-on draws), that brings with it considerable dilution which is amplified by the stock's recent performance."

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