7 Best Small-Cap Drone Stocks to Buy Now

2. Vertical Aerospace Ltd. (NYSE:EVTL)

Market Capitalization: $645.35 Million

No. of Hedge Fund Holders: 9

Vertical Aerospace Ltd. (NYSE:EVTL) is a United Kingdom-based global aerospace and manufacturing company engaged in the eVOTL business. The company focuses on designing, manufacturing, and selling zero-operating emission eVTOL aircraft. The company is targeting to sell its flagship eVTOL, the VX4, for use in the advanced air mobility (AAM) market. The VX4 has undergone the initial stages of its flight test campaign as the company advances into the next stage.

Vertical Aerospace Ltd. (NYSE:EVTL) recently announced $50 million in funding by Mudrick Capital. The company will receive a $25 million upfront funding and an additional $25 million backstop. Vertical Aerospace continues to add capital investment to fuel its research and development for the VX4 aircraft and expand testing and certification capacities.

On January 23, Canaccord Genuity analyst Austin Moeller revised the price target from $13.50 to a previous $16 target. The analyst maintains a Buy rating on the stock and the price target still reflects an upside of 55% from the current price level. Analysts have cut the price following the company’s aggressive capital raises to support its VX4 aircraft project. Analysts believe that the company has significantly mitigated financial risk for itself. However, they remain bullish on the company’s ability to achieve certification for the VX4, which is anticipated in 2028.