JOBY Stock Gains 10% on Analyst Upgrade

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It’s a choppy Friday on Wall Street as investors look ahead to next week’s monthly options expiration, the Consumer Price Index (CPI) and Producer Price Index (PPI) inflation reports and the Federal Reserve’s next interest rate decision. However, it’s not a choppy day for Joby Aviation (NYSE:JOBY). As of this writing, JOBY stock is up more than 10%.

Today, shares opened higher by just 3.5%, then quickly vaulted higher and ran to double-digit gains. At the stock’s high during the Friday session, shares were up almost 13%.

What has helped JOBY take flight? Analysts at Canaccord Genuity just initiated coverage of both Joby Aviation and Archer Aviation (NYSE:ACHR) with a “buy” rating. They believe that “urban air mobility firms are positioned for the long term.” Canaccord also initiated coverage on Eve Holding (NYSE:EVEX) with a “buy” rating.

More specifically, analyst Austin Moeller made the case that the tangible addressable market for the electric vertical takeoff and landing (eVTOL) sector could be worth $58 billion by 2033. As StreetInsider reports:

“The analyst stated that eVTOL aircraft, which can take off from a traditional heliport (or vertiport) and ferry passengers over busy traffic below using purely battery power, ‘have the potential to substantially reduce carbon emissions in major urban areas and break up traffic congestion by taking to the air.’”

Where Can JOBY Stock Go From Here?

With Friday’s rally, JOBY stock came within pennies of its 52-week high. That mark is currently at $7.15, a level that the stock hit in August 2022.

It has been a quiet rally, but a booming one over the last few months. Shares are now up about 18% this week, the stock’s seventh-straight weekly gain. Five of those seven weeks have generated above-average volume as well. Amid this run, shares are up more than 80%. With around 36 million shares traded this week, this marks JOBY stock’s highest-volume week in a long time.

That said, some think that shares can still go higher. Moeller assigned the stock a “buy” rating as well as an $8 price target. That would suggest about 15% upside from current levels. If JOBY is to get there, it would mark the stock’s highest price since November 2021.

On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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