BofA Securities Downgrades EHang (EH) to Underperform on Regulatory Concerns
BofA Securities simultaneously cut its price target on EHang (EH) shares to $5.40 from $13.00.
(Charlotte, North Carolina & Guangzhou, China) Bank of America Securities today (Jul. 8) downgraded EHang Holdings (NASDAQ: EH) to Underperform from Buy and cut its price target on EH shares to $5.40 from $13.00, in light of regulatory concerns following an incident in late June in which a light-sport pilot eVTOL, an Aurora SA60L – which was not manufactured by EHang but by Sunward Aircraft, a division of Hunan Science and Technologies Co Ltd – crashed into a high-rise building in Beijing’s CBD area, according to Investing.com.
Image of EHang’s Eh216-S in flight courtesy of EHang.
BofA analyst Fiona Liang said the incident would result in stricter regulations governing low-altitude airspace and weaken consumer confidence in eVTOL flights, according to Investing.com.
BofA cut EHang’s 2026, 2027, and 2028 estimated sales volume by 11%, 16%, and 18%, respectively, while keeping its gross profit margin forecast unchanged.
Shares of EHang are now rated Underperform by BofA as the firm expects lower revenue growth in 2026-27 caused by slower commercialization and uncertainty in regulation.
Despite the downgrade, InvestingPro analysis suggests the stock may be undervalued at current levels, according to Investing.com – the stock closed today up 1.99% at $5.63, just above its 52-week low of $5.38.
** Not investment advice; neither The FLY Report nor FLYJETS – nor any associated individual – is a registered investment adviser.
