William Blair initiates on air taxi developer Vertical with 'outperform'

In a coverage initiation report, William Blair says investors should buy shares of UK air taxi developer Vertical Aerospace, which has a market capitalization of about $622 million. The company has one of the largest disclosed order books in the industry, a strategic European footprint, and in-house battery development – advantages that most competitors lack, according to William Blair.

William Blair analyst Louie DiPalma initiated coverage of shares in the electric vertical takeoff and landing (eVTOL) aircraft developer and assigned an “outperform” rating, CNBC reported.

Vertical has secured preorders for around 1,500 VX4 aircraft, one of the largest disclosed order books in the eVTOL industry, DiPalma writes. The company is targeting aircraft certification in 2028 and plans to launch its first commercial flights in the UK in 2029 in partnership with U.S.-based Bristow Group, which specializes in offshore oil and gas helicopter transportation.

Vertical is strategically positioned to capture a significant share of the nascent but potentially large urban air mobility market, DiPalma said. Most of the company’s key peers are focused on the U.S., Middle Eastern, and Chinese markets, while Europe has relatively few players. Germany’s Volocopter, previously the region’s most prominent player, underwent restructuring last year amid bankruptcy risks.

The William Blair analyst also highlighted the design of Vertical’s aircraft. Unlike many competing air taxis, the VX4 features a sizable luggage compartment, which DiPalma described as critical for airport-based passenger transportation. Another competitive advantage, he said, is the company’s proprietary battery technology.

Vertical is also developing a hybrid-electric variant of its aircraft. The model is expected to offer longer range and higher payload capacity than the fully electric version, which DiPalma says presents opportunities in military, cargo, and emergency-services applications. Vertical is not alone in looking for growth in the defense segment: U.S.-based Archer Aviation has also announced plans to expand into the military market.

JPMorgan estimates that the eVTOL market could reach $1 trillion by 2040 or as much as $3 trillion when including cargo and military uses. For comparison, Fortune Business Insights valued the global air taxi market at $1.7 billion in 2024.

Wall Street remains broadly constructive on the outlook for Vertical stock. The shares have seven “buy” ratings versus one “hold,” according to MarketWatch data. The average target price stands at $9.34 per share, implying upside of about 50% versus the Wednesday close, when the stock rose 1.5% on the day to $6.23 per share.