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On Tuesday, Joby Aviation's (JOBY, Financial) price target was raised from $8.00 to $ 10.00 by Needham & Company spinning with a continuing "Buy" rating following a productivity meeting with its Chief Product Officer Eric Allison at the 27th Needham Growth Conference. Joby's upcoming international launch in the United Arab Emirates and anticipated domestic regulatory approval from the Federal Aviation Administration (FAA) have led the firm to remain optimistic about the company's market presence and growth.
The higher price target comes after a valuation multiple of 10 times Joby's expected adjusted EBITDA in 2031 versus earlier at 7.5 times. Part of the cause for the upward revision is Joby's improved financial position, as the company closed a $500 million capital raise in the fourth quarter of 2024. However, despite that, the company's balance sheet is strong and effective, its liquidity remains robust, there is more cash than debt, and it has a current ratio of 16.12.
With electric vertical takeoff and landing (eVTOL) space advancing, Joby Aviation is on track to quickly become a growing player in the urban air mobility (UAM) market. The company's strong finances at home and abroad, along with future international and domestic milestones, support its growth forecast. And it keeps Joby positioned to enjoy the pent up demand for sustainable transportation solutions in the future.
This article first appeared on GuruFocus.