BofA Securities Trims EHang (EH) PT to $24 Following Q1 Sales Miss

On Tuesday, Bank of America Securities analyst Fiona Liang reiterated a Buy rating on EHang Holdings Limited (NASDAQ:EH), but reduced the price target from $26 to $24.

This adjustment follows EHang’s Q1 2025 financial results, which reported lower-than-expected sales of RMB 26 million. This figure represents a significant decline of 58% year-over-year and 84% sequentially.

BofA Securities Trims EHang (EH) PT to $24 Following Q1 2025 Sales Miss

A modern commercial jet airliner decorated with the company logo in flight against a clear blue sky.

The shortfall was primarily attributed to fewer electric vertical take-off and landing (eVTOL) deliveries, with only 11 units delivered compared to the anticipated 60 units, as well as extended internal budgeting processes for procurement from local governments and a cautious approach from customers awaiting the Operational Certificate/OC, which EHang obtained in late March 2025.

Despite these setbacks, EHang’s management remains optimistic about achieving its 2025 revenue target due to a rebound in orders following the OC receipt. The company also saw an improvement in gross profit margin, which rose to 62.4% in Q1, continuing its track record of margins with a sustained gross profit margin of 61.37% over the last 12 months.

EHang is expected to benefit from the development of the eVTOL industry in China, which could drive significant growth. EHang Holdings Limited designs, develops, manufactures, sells, and operates UAVs (unmanned aerial vehicles), as well as supporting systems and infrastructure for various industries and applications.

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This article is originally published at Insider Monkey.