Investment Manager's Update: Canaccord Genuity Holds Rating on Surf Air Mobility Inc (NYSE:SRFM) with $2.20 Price Target
In a recent analysis, Canaccord Genuity has maintained its Hold rating on shares of Surf Air Mobility Inc (NYSE:SRFM) with a price target of $2.20. The firm's analyst has adjusted the investment model to account for the company's recent reverse stock split and the NYSE's acceptance of Surf Air Mobility's plan to regain compliance with listing standards by November 20, 2025.
The updated price target reflects a change from the previous target of $1.00, prior to the reverse split, and includes assumptions for a potential capital raise post-split. Despite the potential upside suggested by the new price target, the firm has chosen to remain cautious with a Hold rating due to uncertainties facing the company in the near term.
The analyst's valuation of Surf Air Mobility is based on a discounted free cash flow (FCF) analysis projecting through 2030, a common method in equity valuation to determine a company's value. The acceptance of Surf Air Mobility's compliance plan by the NYSE signals positive progress as the company works towards meeting listing requirements within the given timeframe.
Overall, the firm's neutral outlook on Surf Air Mobility's stock remains unchanged in the immediate term. The Hold rating advises against buying or selling the stock at the current price level, considering uncertainties that could impact the company's performance in the near future.
In conclusion, investors should closely monitor Surf Air Mobility's progress towards NYSE compliance and take into account the firm's cautious stance when considering investment decisions in the company's stock. Stay informed to make informed financial choices.