Investing.com - Jefferies has initiated coverage on Beta Technologies (NYSE:BETA) with a Hold rating and a price target of $30.00. The stock currently trades at $27.27, with a market capitalization of $6.23 billion, and is set to report earnings on December 4.
The investment firm cited Beta Technologies' multi-aircraft approach as a key factor that reduces certification risks compared to its peers. Jefferies also highlighted the company's vertical integration strategy, which captures the full lifecycle value of each aircraft, with the aftermarket opportunity approximately three times larger than the original equipment sale. InvestingPro data shows Beta holds more cash than debt and maintains a current ratio of 2.84, indicating strong short-term liquidity.
Jefferies projects Beta Technologies' revenues will grow at a 156% compound annual growth rate to $4.2 billion by 2030. This forecast assumes conventional takeoff and landing (CTOL) and vertical takeoff and landing (VTOL) certification in 2027, with military VTOL certification following in 2028. According to InvestingPro, Beta currently generates just $23.07 million in revenue but boasts impressive gross profit margins of 76.29%, suggesting strong unit economics if it can scale production.
The firm expects adjusted EBITDA to turn positive in 2030, contingent upon timely entry into service for Beta's aircraft lineup. The $30 price target represents 5.7 times projected 2028 sales.
Jefferies cautioned that timing remains critical for Beta Technologies, noting that each one-year delay in certification would impact their discounted cash flow valuation by approximately $3 per share.
In other recent news, BETA Technologies, Inc. has made several significant announcements. The company has priced its initial public offering at $34 per share, offering nearly 30 million shares of Class A common stock. This IPO marks BETA's entry into the New York Stock Exchange, providing investors with a new opportunity in the electric aerospace sector. Additionally, BETA is advancing its electric aircraft capabilities through a partnership with Near Earth Autonomy. This collaboration aims to develop autonomous features that enhance the aircraft's performance for both defense and commercial purposes. BETA has already integrated Near Earth's systems into its aircraft, with flight testing anticipated to start in 2026. In infrastructure developments, BETA has installed electric aircraft charging stations at Al Bateen Executive Airport in Abu Dhabi. Plans are also in place for a similar installation at Zayed International Airport, supporting the United Arab Emirates' advanced air mobility ecosystem. These recent developments reflect BETA's commitment to innovation and expansion in the aerospace industry.