Deutsche ups Joby target to $6, says 70% weekly rally unwarranted

Deutsche Bank analyst Edison Yu raised the firm’s price target on Joby Aviation to $6 from $4 and keeps a Sell rating on the shares. The stock has rallied 70% over the past week following several company updates, including completion of its first production prototype, confirmation of payload weight, and a $100M investment from existing partner SK Telecom, the analyst tells investors in a research note. The firm says that while these are “generally encouraging signs,” the significant rally in the shares is not warranted based on an analysis of these developments, says the firm. It believes the majority of the rapid rise of the stock is likely due to “retail speculation.” Deutsche says Joby’s risk/reward “seems increasingly unfavorable at these levels.”