Jefferies Sees Upside in EHang, Sets $30.40 Target Price
Investment bank Jefferies projects the urban air mobility market to grow from $0.9B in 2025 to $1.92T by 2050.
Investing.com reports that on May 5, New York-based Jefferies began coverage of EHang Holdings (NASDAQ:EH).
The investment bank issued a Buy rating and set a price target of $30.40 per share. As of mid-day Monday, EHang shares were trading at $18.82.
According to InvestingPro data, the stock appears fairly valued using its proprietary Fair Value model, with current analyst price targets ranging between $20.08 and $31.15.
Jefferies' analysis highlights the rapid growth potential of the low-altitude economy and a substantial total addressable market (TAM) as key reasons for the optimistic outlook.
It estimates that the global TAM for urban air mobility and related technologies will grow from $0.9 billion in 2025 to over $1.92 trillion by 2050.
The projected expansion is driven by advances in UAVs, eVTOL aircraft, and smart infrastructure. The analyst emphasized that companies active in both manufacturing and infrastructure are likely to benefit most from this trend.
EHang is positioned as both an eVTOL manufacturer and a platform operator, a dual strategy that the analyst compared to a combination of “Tesla and Uber” within the low-altitude aviation space.
In March 2025, Hefei Heyi Aviation Co., Ltd., a joint venture between EHang Holdings and the Hefei Municipal Government, received an Air Operator Certificate (AOC) from the Civil Aviation Administration of China (CAAC) for the EH216-S, marking the first certification globally for a passenger-carrying uncrewed aircraft.
The approval allows limited commercial operations and is expected to support the delivery of over 1,000 units under existing intent orders.
In addition, EHang’s Guangdong subsidiary was granted a separate AOC to operate flights around its base at Suigang Wharf.
Operationally, EHang maintains a gross profit margin of 61.37% and a current ratio of 2.89, figures that InvestingPro considers signs of strong efficiency. Over the past twelve months, the company posted a 288% revenue increase, with analysts forecasting 98% growth for the current fiscal year.
In Q4 2024, EHang reported revenue of RMB 164.3 million, a 190% increase year-over-year and above analyst expectations. Earnings per share came in at -0.33, beating the expected -0.83, and the company recorded its first positive adjusted net income.
In response, Deutsche Bank analyst Edison Yu upgraded EHang from Hold to Buy, though he lowered the price target from $22.00 to $20.00, citing competitive pricing and strong positioning in China’s eVTOL sector.
EHang stated that recent U.S. tariff changes will not impact its business, as it does not export to the U.S. and has a stable domestic supply chain.
The company reported that 95% of its 2024 revenue came from China but also noted continued expansion efforts in Europe and Asia.
Its next earnings report is scheduled for May 29, 2025.
Author’s note: Check out my commentary to Zag Daily regarding EHang’s statement on U.S.-China tariffs.
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