Piper starts Surf Air Mobility at Overweight, sees over 100% upside

Piper Sandler analyst Alexander Potter initiated coverage of Surf Air Mobility with an Overweight rating and $4 price target, implying more than two-times upside potential versus the current price. The analyst says Surf Air has been overlooked due to the timing of its direct listing, which coincided with earnings season and summer vacations. Unlike its electric vertical take-off and landing peers, Surf Air has an existing business with $100M of annual revenue and a multi-year, sustainable growth rate in the mid-20% range, the analyst tells investors in a research note. The firm believes that as in-house and third party electrified aircraft are commercialized, the company should be able to unlock spending savings while enabling the widespread adoption of electric aircraft in commuter routes.