Morgan Stanley reiterated an Overweight rating on Joby Aviation (NYSE:JOBY) after meeting with management at the firm's tech and media conference.
Analyst Kristine Liwag said the most significant takeaway from the round of meetings is that the company continues to progress on its planned commercial service launch in 2024 despite the recent Joby aircraft accident.
"No surprise, this topic was touched on in all the meetings we attended. Additionally, another key focus of the meetings was on Joby’s recent partnership announcements and what they mean for global roll out with SK in South Korea and ANA in Japan. Overall, we walked away from the meetings positive regarding the company’s plan to continue flight testing and setting up partnerships for commercial service."
It was noted that Joby's (JOBY) strategy is to push the edge of the flight envelope and learn the aircraft’s limitation in advance of flight testing for FAA credit. Liwag called it a positive step that the flight test program is currently pilotless and no injuries have been recorded from the accident. Commercial service is anticipated in 2024.
Shares of JOBY rose 2.22% premarket to $4.95. The firm assigned a price target of $16 to JOBY to rep more than 230% upside potential for shares. JOBY has traded in range of $3.61 to $14.33 over the last 52 weeks.