Morgan Stanley says EHang , a maker of flying cars, is poised to be a leading player as eVTOL , or electric vertical take-off and landing vehicles, become more commercial. “We view EHang as a pioneer in the urban air mobility (UAM) market — with the world’s first [type certificate] awarded, validated products, and access to a multi-trillion [renminbi total addressable market] in China,” analyst Cindy Huang wrote Sunday. The Wall Street investment bank began research coverage of the EHang stock with an overweight rating and a $27.50 per share price target, implying more than 58% upside from Friday’s $17.38 close. EHang stock has risen roughly 3.4% in 2024 through Friday, and is up almost another 6% in early trading Monday. EH YTD mountain EHang stock. The issuance of the certificate from the Civil Aviation Administration of China in April is a major turning point for EHang, as the company cleared a key hurdle to begin mass production of its EH216-S pilotless eVTOL aircraft. Huang added that the company’s potential growth in China is tied to the expansion of aerial sightseeing and tourism, benefiting the so-called “low altitude economy” to which EHang caters. “This represents a substantial emerging market, and EHang (EH), as a market bellwether with first-mover advantage, is poised to capture significant growth potential, in our view,” the analyst said. — CNBC’s Michael Bloom contributed to this report.
Click Here to Read the Full Original Article at Investing…
