SUPERNEWS

Equities

Morgan Stanley: EHang to Soar 60% to $27.50, Amid Sector Shifts

Morgan Stanley projects EHang stock to soar nearly 60%, spotlighting its lead in the burgeoning eVTOL market with a $27.50 target.

By Alex P. Chase

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5/6, 10:50 EDT
Amazon.com, Inc.
Comerica Incorporated
Walt Disney Company
Johnson Controls International plc
Micron Technology, Inc.
United States Steel Corporation
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Key Takeaway

  • Morgan Stanley initiates EHang with an overweight rating, projecting a nearly 60% surge to $27.50/share from $17.38.
  • Analyst calls reflect diverse sector views: upgrades for Disney and Micron; downgrades for Johnson Controls, Peloton, Comerica.
  • Market trends underscore strategic shifts in industries like semiconductors and banking, highlighting growth and challenges.

EHang's Market Potential

Morgan Stanley has initiated coverage on EHang Holdings, a prominent player in the electric vertical take-off and landing (eVTOL) vehicles sector, with an overweight rating and a price target of $27.50 per share. This target suggests a significant upside from the closing price of $17.38 on Friday. Analyst Cindy Huang highlighted EHang's pioneering status in the urban air mobility (UAM) market, noting its achievements such as receiving the world's first type certificate and having access to a multi-trillion renminbi total addressable market in China. EHang's stock has seen a rise of approximately 3.4% in 2024 through Friday, with an additional increase of almost 6% in early trading on Monday.

Analyst Calls Across Sectors

Monday's analyst calls from Wall Street showcased a variety of perspectives across different sectors. Notably, Morgan Stanley's bullish stance on EHang was complemented by Deutsche Bank's optimism towards Disney, raising its price target ahead of earnings. Baird upgraded Micron to outperform, citing future opportunities, while Loop Capital Markets increased its price target for Amazon. Conversely, UBS downgraded Johnson Controls due to operational challenges, and Citi expressed concerns over Peloton and Comerica, highlighting sector-specific trends and challenges.

Industry Trends and Strategic Shifts

The analyst calls reflect broader industry trends and strategic shifts within companies. U.S. Steel's upgrade by Morgan Stanley points to the potential value creation from the company's transformational investments. Micron Technology's upgrade by Baird underscores the semiconductor industry's critical role in supporting evolving technology trends. Meanwhile, downgrades for Johnson Controls by UBS and Peloton and Comerica by Citi indicate operational and market challenges in the HVAC and banking sectors, respectively. These shifts and trends highlight the dynamic nature of the market landscape, where strategic transformations are essential for growth and competitiveness.

Street Views

  • Cindy Huang, Morgan Stanley (Bullish on EHang):

    "We view EHang as a pioneer in the urban air mobility (UAM) market – with the world’s first [type certificate] awarded, validated products, and access to a multi-trillion [renminbi total addressable market] in China."