Eve Holding will need capital before certification, says Raymond James

Raymond James analyst Savanthi Syth says Eve Holding’s preliminary 2023 cash burn guidance last week of $100M-$150M does not meaningfully change her view on the company’s funding needs or long term earnings potential. The analyst still expects Eve to need additional capital prior to certification due to its lower initial equity raise. Syth views Eve’s estimated two-to-three year cash runway as favorable, "albeit with additional capital needed ahead of certification." She keeps a Market Perform rating on the shares. The company’s single-wing lift and cruise design is geared towards an expected easier path to certification relative to peers, which Eve targets as a 2025 event with commercial service commencing in 2026, Syth tells investors in a research note.