Promising Growth Forecasts Leading to Analysts’ Optimism for Ehang Holdings (EH)

Ehang Holdings Ltd. (NASDAQ:EH) is one of the most promising small-cap industrial stocks under $50.

On December 2, DBS analyst Jason Sum reaffirmed his bullish view on Ehang Holdings Ltd. (NASDAQ:EH). He assigned a Buy rating to the stock and has estimated a target price of $24. Sum’s forecasts lead to an almost 80% upside for the stock from the current level.

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The consensus 1-year median price target for Ehang Holdings Ltd. (NASDAQ:EH) is $21, resulting in an upside of above 53%. These forecasts stem from 3 analyst ratings assigned to the stock as of December 22 closing. 2 analysts gave Buy calls, and 1 was a Hold call.

In its third-quarter earnings call, the management highlighted the successful completion of more than 80,000 flights around the world. They also emphasized their plans to expand operations across Southeast Asia and the Gulf. On the product development front, the company is taking strides with a strong order backlog for its well-diversified product mix that includes drone light shows, firefighting variants, and logistics aircraft.

During the earnings call, management also mentioned that capital reserves for the company currently exceed RMB 1.13 billion. This gives Ehang Holdings Ltd. (NASDAQ:EH) adequate financial strength to make R&D and other commercial investments in the future.

Ehang Holdings Ltd. (NASDAQ:EH) offers an autonomous aerial vehicle (AAV) technology platform to ensure accessible, secure, and eco-friendly air mobility for everyone. Apart from an extensive product portfolio comprising EH216 series, VT series, Falcon B, and GD series, their service offerings also include passenger transportation, logistics, and aerial media solutions.

While we acknowledge the risk and potential of EH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.