The electric vertical takeoff and landing (eVTOL) sector experienced a downturn, with Archer Aviation (ACHR, Financial) dropping over 9%, Joby Aviation (JOBY) falling more than 6.8%, Eve Holding (EVEX) declining by 5.8%, and Blade Air Mobility (BLDE) down by 5.6%.
JPMorgan has adopted a more cautious stance on the eVTOL industry, aiming to balance the short-term strong stock performance with potential long-term pullback risks. Analyst Bill Peterson from JPMorgan noted that the enthusiasm surrounding the eVTOL sector might have surpassed its actual development stage.
The firm downgraded Archer Aviation's rating from "Overweight" to "Neutral" and Joby Aviation's rating from "Neutral" to "Underweight," signaling a more conservative outlook on these stocks.
