Analysts upbeat in their initiations on 'young Tesla', electric plane maker Beta

At least seven Wall Street analysts have recently initiated coverage on Beta Technologies with a “buy” rating on the shares, arguing the electric aircraft maker is emerging as a strong contender in the regional aviation market, Bloomberg reports. They say Beta, which went public just a month ago, is already pulling ahead of rivals and gaining traction in cargo and passenger transport, medical evacuation flights, and defense technologies.

Morgan Stanley likened Beta to “a young Tesla, but with a more attractive end market of aerospace, which has higher barriers to entry than autos,” Bloomberg writes. The firm initiated the stock with an “overweight” rating and a $34 per share target price, almost 30% above the company’s December 1 closing level of $26.22 per share, when the shares fell 3.9% on the day.

Needham, which estimates the total addressable market for electric regional mobility at $1 trillion, said Beta is well positioned to seize early market share as the industry shifts to low-emission aviation. The firm issued a “buy” rating and a $34 per share target price.

Andres Sheppard of Cantor Fitzgerald said Beta’s approach to first certify an eCTOL (electric conventional takeoff and landing), “and to commercialize via cargo and medical as its primary use cases (before expanding to passenger flights) provides a faster and better-defined route to” Federal Aviation Administration certification. Sheppard expects the firm will get certification between the end of 2026 and 2027, “creating a significant first-mover advantage.” He adds that Beta is already generating revenue unlike most peers in the space. His rating is “overweight” with a $42 per share target price.

Analysts at Citigroup led by John Godyn said Beta is streamlining production by integrating motors, batteries, software, charging hardware, and high-voltage systems into a single design process. While more capital-intensive in early years, Citi expects this approach to “improve Beta’s return on R&D dollars” and “reduce reliance on suppliers.” “We believe that the company has, in many ways, been engineered to maximize profitability as its technology is certified and popularized in the coming decades,” Citi said in the note. It also highlighted the advantage of Beta’s national charging network, which includes 84 sites, and said aftermarket services for electric aircraft – particularly batteries – could become a major long-term profit driver. Citi rated the stock “buy” with a $41 per share target price.

Goldman Sachs told clients in a November 30 note that Beta is "best positioned, and the recent selloff provides an attractive entry point,” CNBC reported. Goldman assigned a “buy” rating.

BofA said Beta will be more than just an airplane manufacturer and called the company a key player in the expansion of electric aviation. The bank started coverage at “buy” with a $35 per share target price.

BTIG said Beta’s strategy of capturing near-term demand across the freight, medical, and defense markets before moving into passenger operations positions the company well, as reported by Investing.com. The firm rated the shares “buy” with a $40 per share target price.

Sheila Kahyaoglu of Jefferies is the only analyst with a “hold” rating. She pointed to the stock’s 23% decline in the month following the IPO but said the weakness rather reflects a broader pullback in small caps and aerospace stocks. “We continue to see an upside and think that Beta will be a winner in the space,” Bloomberg quoted her as saying.

Beta completed its IPO on November 4, raising $1.01 billion. The company sold 29.9 million shares at $34 per share, pricing above its initial range. Beta was thus valued at about $7.44 billion, Reuters wrote.

FactSet data shows that of the eight analysts who have begun covering the stock, seven have a “buy” and one has a “hold.” The Wall Street consensus target price is $37.90 per share, implying 44.50% upside versus the December 1 closing price.