LILM - Lilium downgraded as Oppenheimer awaits funding visibility

2023-03-29 09:21:26 ET

Lilium ( NASDAQ: LILM ) was downgraded at Oppenheimer on Wednesday as the company’s cash-burn is raising concerns.

The firm’s team noted that Lilium ( LILM ) “continues to execute well” and is making important strides toward certification as well as improving its supply chain. However, costs are a growing issue as the company continues to burn through cash, in their view.

“While LILM is making meaningful technical and business process, it is also working through the cash on its balance sheet and its market cap has shrunk substantially putting the company in a challenging position,” the downgrade note explained. “Our view that LILM's vehicle design has industry-leading safety features and ROI remains intact, but we are stepping to the sidelines as the company solidifies its funding plans.”

The team shifted from Outperform to Perform given this outlook. Shares of Lilium nonetheless rose 1.8% shortly before the market open on Wednesday.

Read more on why Seeking Alpha contributor Tim Worstall is concerned about the company’s financials as well .

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