Top 11 Small Cap Stocks to Buy with Biggest Upside Potential

3. Vertical Aerospace Ltd. (NYSE:EVTL)

Market Cap: $321.30 million

Analyst Upside: 224.84%

Number of Hedge Fund Holders: 8

Vertical Aerospace Ltd. (NYSE:EVTL) is a global aerospace and technology company that designs, manufactures, and sells zero-operating-emission electric vertical takeoff and landing aircraft. It employs cutting-edge technology from the energy, automotive, and aerospace industries for electric aviation and its use in the advanced air mobility (AAM) market.

On March 20, analyst Austin Moeller from Canaccord Genuity maintained a Buy rating on Vertical Aerospace Ltd. (NYSE:EVTL) and set the price target at $13.50. The analyst said the company holds a promising position in the eVTOL market. Its VX4 prototype is a full-scale aircraft that allows a streamlined certification process and efficient data collection. This distinguishes the company from its competitors, who scale up from subscale models that potentially complicate development.

Moeller also reasoned that VX4 offers higher cargo capacity and passenger comfort, which makes it an attractive choice for premium travelers and supports the company’s future outlook. Vertical Aerospace Ltd. (NYSE:EVTL) also has a strong technical team that includes experienced engineers and test pilots with considerable industry backgrounds. This depth of expertise supports its ability to develop commercially viable eVTOL aircraft. The analyst opined that Vertical Aerospace Ltd.’s (NYSE:EVTL) strategic interest in securing investments from a battery OEM or a large aerospace and defense partner could potentially improve its technological and financial capabilities. It also has the potential for innovative applications and reduced operational expenses, further supplementing the buy rating.