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Deutsche Bank doesn't like Joby’s stock rally, reiterates Sell rating

Published 07/05/2023, 03:53 PM
Updated 07/05/2023, 03:52 PM
© Reuters Deutsche Bank doesn't like Joby’s stock rally, reiterates Sell rating

Deutsche Bank reiterated its Sell rating on Joby Aviation (NYSE:JOBY) while adjusting its price target to $6.00 from $4.00.

Joby’s shares experienced a significant surge in price over the past week, increasing by 70% compared to NASDAQ's 3% growth. This was followed by several positive updates from the company, including the completion of its first production prototype, confirmation of the payload weight, and a $100 million investment from its existing partner, SK Telecom (NYSE:SKM).

Although these developments are generally positive, Deutsche Bank’s analysis of these developments suggests that the sharp increase in the stock price is not justified. The bank believes that the majority of this rapid rise can be attributed to speculation from retail investors.

“That being said, with the performance specs of the aircraft looking better than feared, we do take our price target up to $6 while maintaining our Sell rating as the risk/reward seems increasingly unfavorable at these levels,” added Deutsche Bank.

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