Vertical Aerospace stock price drops after Raymond James downgrades rating

Investing.com – Vertical Aerospace Ltd. (NYSE:EVTL) stock dropped 2.7% in pre-market trading on Monday after Raymond James downgraded the stock from “Market Perform” to “Underperform.”

Raymond James analyst Savanthi Syth expressed concerns about the company’s financial health and competitive pressures when lowering the rating. The analyst predicts that, assuming normal flight test expenses, the company’s liquidity will last until mid-June, not including approximately $92 million remaining from the company’s market issuance plan.

Syth commented, “We have great respect for this transparent management team and the progress the company has made so far, especially under the more stringent requirements of the UK Civil Aviation Authority. If there is enough time and funding, we believe Vertical will succeed, but the market’s recent attitude toward high-risk companies has cooled (a market cap below $500 million also poses a barrier for institutional investors).”

The analyst also highlighted competitive risks, noting that Archer recently announced the establishment of its UK engineering center in Bristol, which increases the risk of Vertical losing engineering talent, including Dr. Limhi Somerville, who will join Archer in early 2026.

However, Syth acknowledged that Vertical stated in early November that it is working to secure an industrial partner, which is expected to include an investment to reassure the market and potentially address the analyst’s concerns.

This downgrade reflects growing investor caution toward high-risk companies and concerns about the company’s ability to operate without additional capital infusion.

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