Joby Aviation (JOBY) shares surged nearly 20% following the air taxi company’s announcement of successfully completing a series of piloted electric Vertical Takeoff and Landing (eVTOL) flights in Dubai. This positive development signals a significant step forward for the company in its journey toward commercial operations.

According to a press release from Joby Aviation, the completed tests included full transition flights, where the aircraft takes off vertically, transitions to conventional flight, and then lands vertically again. With this latest increase, JOBY stock has risen approximately 100% from its year-to-date low recorded in early April.

The recent test flights represent a crucial milestone, as they were conducted in partnership with local authorities, including the Roads and Transport Authority (RTA) and the General Civil Aviation Authority (GCAA). This validation of Joby’s operational path strengthens its plans to commence commercial services by 2026, as part of an exclusive six-year agreement in Dubai.

The optimistic outlook surrounding these advancements is contributing to the rise in Joby Aviation’s stock value. Canaccord analysts have reiterated their “Buy” rating on JOBY stock, setting a price target of $12, which suggests a potential upside of about 11% from its current trading levels.

Canaccord also highlighted the company’s anticipated benefits from Toyota’s $500 million investment and expressed confidence in the expansion of the Megatent, which is expected to increase production capacity at Joby’s Marina factory from one eVTOL per month to as many as four.

However, investors should be aware that JOBY shares currently carry a higher price compared to Archer Aviation (ACHR), with a price-to-book ratio of 8.71x, significantly above ACHR’s 5.75x ratio.

As for whether to buy Joby Aviation shares today, Wall Street analysts suggest holding onto them, as much of the recent positive news may already be reflected in the stock’s price. Barchart reports that the consensus rating for JOBY stock is currently a “Hold,” with a mean target price around $8.25, indicating a potential downside of nearly 25% from current levels.

On the date of publication, Wajeeh Khan did not hold any positions in the securities mentioned in this article. All information and data provided are for informational purposes only, in accordance with Barchart’s Disclosure Policy.