Cantor Fitzgerald has downgraded Joby Aviation, a manufacturer of Electric Vertical Takeoff and Landing (EVTOL) aircraft, from a buy rating to hold, setting a price target at $9. This decision comes in light of a recent downturn, as Joby’s stock dropped about 8% on Thursday following the downgrade. However, it’s noteworthy that the stock has gained 26.5% over the past month, and currently sits 9.1% higher year-over-year, bolstered by a significant executive order and a New Deal signed by former President Donald Trump.
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The executive order is aimed at pushing the transportation sector to create initiatives that could fast-track EVTOL operations in the U.S., which could favor companies like Joby Aviation and Archer Aviation.
This downgrade follows Joby’s recent memorandum of understanding with Abdul Latif Jameel, wherein they are looking into a distribution partnership for electric aircraft in Saudi Arabia. This agreement could involve the delivery of up to 200 aircraft and associated services, valued at around $1 billion.
Cantor moves to the bystander of Joby Stock
Cantor analyst Andres Sheppard acknowledges Joby Aviation as a strong player in the EVTOL industry, citing its strategic partnerships with Toyota™, Delta Air Lines, and the U.S. Department of Defense. Still, he believes that now might not be the best entry point for investors, especially after a remarkable 60% increase in stock value over the last three months and an approximate 90% rise over the past year.
While analysts point out that Joby Aviation maintains robust liquidity, they also highlight that the company has one of the highest cash burn rates in its sector. As of the end of the first quarter of 2025, Joby reported total liquidity around $1.3 billion, which includes $250 million from Toyota, but it anticipates expenses ranging between $500 million and $540 million for 2025.
Sheppard has also expressed concerns about potential delays in U.S. certification, suggesting that Joby might not achieve full FAA type certification until at least the latter half of 2026. Additionally, he raises questions about the company’s unit economics, especially the costs associated with pricing and deploying air taxi services.
Is Joby stock a good purchase?
On Wall Street, there seems to be a mixed buy consensus for Joby Aviation, featuring three buy ratings, three holds, and one sell recommendation. The average target for Joby’s stock stands at $8.86, indicating it’s nearing what could be considered fair value.
