Investment idea of the day from Freedom Broker experts: a Chinese eVTOL manufacturer

Freedom Broker analysts maintained a positive view on EHang Holdings (EH) and said that the key negative factors are already priced in. The experts set a target price of $8.55; at the current price of $5.5, the upside potential is more than 55%. Analysts believe the stock’s appeal is supported by the company’s valuation, China’s preparations for the commercial operation of unmanned eVTOLs, and EHang’s potential shift from demonstration flights to public paid transportation. 

EHang is a developer of unmanned flying taxis

EHang Holdings is a Chinese technology company specializing in unmanned electric vertical takeoff and landing (eVTOL) aircraft. The company’s core product is the world’s first fully autonomous electric air taxi with vertical takeoff and landing, the EH216-S. According to analysts, EHang remains the only publicly traded eVTOL manufacturer holding the full set of Chinese certifications for an unmanned passenger air taxi. The company’s operators have already received the first operator certificates required for commercial passenger flights.

Transition to paid flights is the main catalyst

Past negative trends are reflected in the price, Freedom Broker analysts note. In their view, what matters more to investors now is not weak first-quarter results, but the company’s ability to move from demonstration flights to regular commercial operations.

China is gradually building out the infrastructure to scale unmanned taxi services, EHang has noted. In May 2026, the Civil Aviation Administration of China (CAAC) issued requirements for training remote pilots of large civil unmanned aircraft. EHang and its partners have already established more than 40 operating sites in China.

An additional sign of international validation of the technology was the first unmanned passenger flight of the EH216-S in Central Asia, which EHang conducted in August in Astana. Shortly before that, Kazakhstan put in place an initial regulatory framework for eVTOLs, vertiports, and UTM — a digital air traffic management system.

Analysts see the weak Q1 as a stage already behind

In Q1 2026, EHang delivered 4 EH216-series aircraft versus 11 a year earlier and 61 EH216-series aircraft in Q4 2025. Revenue totaled 25.7 million yuan ($3.7 million) versus 26.1 million yuan ($3.8 million) a year earlier and 177.6 million yuan ($25.7 million) in the prior quarter.

Net loss widened to 126.4 million yuan ($18.3 million) versus 78.4 million yuan ($11.4 million) in Q1 2025. Operating loss was 127.9 million yuan ($18.5 million) versus 89.9 million yuan ($13.0 million) a year earlier. At the same time, gross margin remained high at 62.5% versus 62.4% a year earlier.

Analysts also point to the financial cushion: cash, short-term investments, and other liquid assets totaled 1.03 billion yuan ($149 million) at the end of March. Another factor supporting the share price, they believe, is a share buyback program of up to $30 million. 

Another argument is EHang’s valuation at an EV/Sales multiple of 2.7x. Analysts consider it attractive compared with Western companies in the sector. At the same time, in their assessment, the technical picture in the stock is forming a gradual reversal after significant overselling.

From certification to commercial routes

In April 2025, EHang’s partner — the Hefei Heyi Aviation joint venture — received a CAAC certificate to operate civil unmanned aircraft for carrying people. This gave the company the ability to provide paid passenger transportation services at low altitudes, initially for tourism purposes and on selected routes in China.

At the time, EHang Vice President He Tianxin assessed the outlook for flying taxis as a viable mode of transportation in China over the next three to five years. Freedom Broker analyst Natalia Milchakova noted that the global flying taxi market could reach about $30 billion over the next 10 years, and that China has a chance to become one of the leaders in this fast-growing but high-risk segment.

EHang General Aviation also received a certificate to conduct commercial passenger flights. Since then, General Aviation and Heyi Aviation completed more than 3,000 safe flights without accidents or violations. The company also built commercial infrastructure: a pricing system, ticket sales channels, customer support, and standardized operating procedures. The next important step should be the full launch of public paid flights.

Not an individual investment recommendation.