Last Updated: 14 Oct 2024
Executive Summary
Lilium NV (LILM) is a German-based company that designs, develops, and operates on-demand air taxi services for urban and suburban mobility. Despite reporting negative earnings and revenue, the company's strong analyst support and potential for growth in the electric vertical takeoff and landing (eVTOL) market warrant consideration for investment.
Company Overview
Lilium GmbH, the parent company of LILM, is headquartered in Wessling, Germany. The company's mission is to provide affordable, sustainable, and accessible air transportation solutions. Lilium has developed a unique eVTOL aircraft that can take off and land vertically, making it suitable for urban environments.
Fundamental Analysis
Revenue and Earnings: LILM has yet to generate significant revenue or earnings. The company is currently in the development phase and has not yet commercialized its eVTOL aircraft.
Profitability: The company reported a negative EBITDA of $318.9 million for the fiscal year ending June 30, 2024. This is primarily due to high research and development expenses.
Valuation: LILM has a market capitalization of $463.8 million. The trailing price-to-earnings (PE) ratio is 10.47, which is relatively high for a company with no earnings. However, the company's potential for growth in the eVTOL market could justify this valuation.
Technical Analysis
Price Action: LILM's stock price has been trending down since its IPO in September 2022. The stock is currently trading at $0.73, below its 50-day and 200-day moving averages.
Support and Resistance Levels: The stock has strong support at $0.60 and resistance at $1.00. A break above $1.00 could signal a trend reversal, while a break below $0.60 could indicate further downside.
Short Term Outlook
In the short term, LILM's stock price is likely to remain volatile. The company is facing challenges in commercializing its eVTOL aircraft and generating revenue. Until the company can demonstrate progress in these areas, the stock is likely to trade sideways or decline.
Long Term Outlook
The long-term outlook for LILM is more positive. The eVTOL market is expected to grow rapidly in the coming years, as demand for sustainable and efficient air transportation solutions increases. Lilium is well-positioned to capitalize on this growth, given its technological advancements and partnerships with major airlines.
Analyst Recommendations
Analysts are generally bullish on LILM's long-term prospects. Out of 8 analysts covering the stock, 4 have a "buy" rating, 3 have a "hold" rating, and 1 has a "sell" rating. The average analyst target price is $1.90, representing a potential upside of over 160%.
