EVTL Stock Forecast & Price Target

Vertical Aerospace Ltd is making significant strides in the eVTOL market with its VX4 aircraft, having met rigorous safety requirements and targeting full-transition flight by year-end, which diminishes technical risk and enhances investor confidence. The company has increased its projected aircraft deliveries and manufacturing run rates significantly by 2030 and 2035, indicating robust demand and growth potential in the electric aviation sector. Additionally, Vertical Aerospace's capital-light business model, combined with a favorable regulatory environment, positions the company to potentially outperform peers and close the valuation gap as execution milestones are achieved.

Vertical Aerospace Ltd faces a challenging financial outlook due to significant delays in its flight test program and regulatory certifications, which have hindered progress towards achieving cash breakeven objectives that have been postponed to 2029. The company's capital intensity is increasing, and its valuation continues to exhibit weakness, particularly following the cancellation of aircraft orders from key customer prospects. Additionally, the impact of inflation and supply chain shortages is adversely affecting material procurement, product deliveries, and operational costs, raising concerns over the company's ability to meet targeted gross and EBITDA margins for its OEM sales.