Three most undervalued flying car stocks to buy now
The eVTOL sector is expected to expand at a compound annual growth rate of 52% over the next seven years, making flying car stocks attractive according to InvestorPlace’s Larry Ramer, who states that the market appears to be greatly undervaluing many flying car stocks.
Joby has impressive alliances and is making great progress on the regulatory front, while Archer announced two major deals in recent weeks, and Embraer has agreed to sell dozens of its flying cars to two European companies. Analysts predict that the sector will generate $23.4 billion in sales in 2030.
Ramer said: “I have long been upbeat on the eVTOL sector because they are much cheaper than helicopters to operate but are very similar from an operational standpoint.
“Specifically, like helicopters, eVTOLs land vertically, enabling them to transport people to many points within cities. This has led to the rise of undervalued flying car stocks.”
Joby Aviation appears to be one of the most advanced companies within the flying-car sector as it provided all its Certification Plans to the Federal Aviation Administration in July. In February, it completed its first major regulatory milestone with its Certification Basis published in the Federal Register. The company plans to begin offering flights to consumers in 2025.
Also last month, investment bank Canaccord Genuity raised its price target on JOBY stock to $11, well above the stock’s current price of $7.45, and kept a ‘buy’ rating on the shares. The firm is bullish on the company partly due to its alliances with the Pentagon, Uber and Delta Air Lines. Additionally, Canaccord called Joby the ‘best capitalised’ of the flying car stocks.
If Joby can get a 20% share of the flying car market in 2027 and the sector is worth $15 billion by then, its revenue will come in at $3 billion. That means the stock could be trading at less than two times its 2027 sales, making its valuation rather attractive.
Archer Aviation has made multiple deals in recent months, making its current $1.85 billion market capitalisation look quite low. Last month, the company unveiled new agreements with the US Air Force that may ultimately be worth up to $142 million.
Earlier this month, it obtained investments with a total value of $215 million from several entities including European automaker Stellantis, Boeing, United Airlines and Cathie Wood’s ARK Investment Management.
Moreover, in a development that could tremendously boost Archer’s stock value over the long term, the eVTOL maker agreed to develop autonomous planes with Boeing. Finally, Archer disclosed that the FAA had agreed to allow its Midnight aircraft to begin test flights after it met all of the agency’s safety criteria.
Brazil-based Embraer will be able to provide Eve with a great deal of financial backing, and the subsidiary will be able to form alliances with and sell planes to Embraer’s customers, which include many major airlines.
At the Paris Air Show in June, Eve signed letters of intent to deliver 50 aircraft to Norwegian carrier Widerøe and up to 30 jets with aircraft leasing company Nordic Aviation Capital. Moreover, United Airlines has agreed to utilise EVE’s aircraft in the San Francisco area.
One year ago, JOBY Founder and CEO JoeBen Bevirt bought further shares in his company.
