Joby Aviation (JOBY) Stock Forecast & Price Target

Joby Aviation Inc. is positioned favorably within the eVTOL market, particularly following an Executive Order that is anticipated to accelerate the development and integration of eVTOLs and drones in public safety and defense sectors. This forward momentum is underscored by the global focus on national security, especially in light of ongoing geopolitical developments such as the use of drones in the Russia-Ukraine conflict. Additionally, the company is expected to experience steady growth in selling, general, and administrative (SG&A) expenses, projected at 4-7% annually, aligning with the anticipated expansion of its business operations.

Joby Aviation Inc. lacks diversified revenue streams, relying solely on flight services for the Department of Defense, which raises concerns about long-term financial stability and growth prospects. The company's ambitious development efforts for its eVTOL air taxi and associated aerial ridesharing platform come with substantial capital expenditures and heightened operational risks, especially in an emerging market facing regulatory and technological barriers. Additionally, the absence of substantial revenue from commercial operations, coupled with ongoing research and development expenses, suggests potential difficulties in achieving profitability in the near term.