"Aerospace's Tesla, Inc." Beta (BETA.US) is widely bullish on Wall Street analysts expect the stock price to rise by over 40%

Wall Street investors are optimistic about BETA Technologies (BETA.US), believing that this electric aircraft manufacturer has taken an early lead in the regional aviation field. According to data, as of December 1, most of the eight analysts covering the startup have given this company based in South Burlington, Vermont, a "buy" or equivalent positive rating. It is worth noting that this wave of optimism comes just one month after Beta's IPO successfully raised $1.02 billion. Morgan Stanley analysts pointed out in their report that BETA is "similar to Tesla, Inc. in its early stages of development, but with a focus on the more attractive aerospace field which has significantly higher entry barriers than the automotive industry." Analysts have noted that the company is simultaneously advancing the development of two major models: electric conventional takeoff and landing (eCTOL) and electric vertical takeoff and landing (eVTOL), and has made progress in strategic markets such as cargo transportation, medical transport, passenger travel, and defense, leading the way among industry competitors. However, investors remain skeptical. Despite an average 12-month target price of $37.88 (implying a 43% increase from last Friday's closing price), the stock price has fallen by 22% compared to the IPO price. For Jefferies Financial Group Inc.'s Hilary Kayalulu (the only analyst who has a hold rating on BETA), the weak stock price can be attributed to the general decline of small cap and aerospace stocks. "We continue to see upside potential and believe that BETA will emerge as the winner in this field," Kayalulu said. The positive response that Beta has received on Wall Street highlights investors' growing confidence that electric aviation could become one of the most important developments in short-haul transportation. Needham estimates the total potential market size for electric regional travel to be $1 trillion and believes that BETA, as the industry transitions towards low-emission short-haul aviation, has the ability to capture early market share. Cantor Fitzgerald analyst Andres Shepard pointed out that BETA will prioritize the certification of eCTOL (electric conventional takeoff and landing) models and push forward commercialization through core applications in freight and medical transport (gradually expanding to passenger transport). This strategy paves a more efficient and clear path for obtaining certification from the Federal Aviation Administration (FAA). He predicts that BETA will complete certification by the end of 2026 to 2027, thereby establishing a significant early market advantage and key strategic position in the aviation industry's technology iteration wave. "In addition, BETA has generated revenue (something that most of its peers have not achieved yet)," Shepard wrote in the report. The analyst team led by John Godyn of Citigroup stated that BETA simplifies manufacturing practices by integrating motors, batteries, software, charging hardware, and high-voltage distribution into a single design process. Despite higher early capital intensity, Citigroup expects that this will "improve the return on investment in BETA's research and development" and "reduce dependence on suppliers." "We believe the company has been carefully designed in various aspects to maximize profitability after technology certification and popularization over the next few decades," Citigroup stated in the report.