EVEX - Eve Holding: Stronger Outlook Despite Weak Performance

2024-05-23 10:43:08 ET

Summary

• Eve's stock has fallen ~30% since my previous article in August, despite positive progress in eVTOL development and increased order backlog.
• The company continues to hold the largest market share (~18%) in a potential trillion-dollar industry, with differentiated support from Embraer, and a simpler certification path through ANAC.
• An exciting time with four pivotal catalysts in the next 12-18 months to keep investors engaged, including the completion of the first prototype, test-campaigns, and definition of certification basis.

In February 2023, I published my first buy rating on Eve Air Mobility ( EVEX ). The stock then surged ~45% until I published my second article on the stock in August of 2023 due to new supplier partnerships, extended collaborations, increased backlog, and positive market conditions. Since my second article, the stock has fallen ~30% without any change in the fundamentals (i.e., expectations to commercialization haven’t changed, cash burn hasn’t changed significantly, backlog has increased slightly, etc.)....

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