Blade Air Mobility jumps as JPM initiates on potential in ride-sharing in skies

Strata Critical Medical

09/09/2021 14:18

** Shares of tech-powered air mobility co  BLDE.O  surge
7.7% at $9.47 premarket; set to open highest since July if gains
sustain
    ** J.P.Morgan starts coverage with "overweight" and $16 PT
    ** JPM says BLDE, "a first mover in Urban Air Mobility
(UAM)," has strong growth momentum that will increase on rising
brand awareness, scheduled flight services and expansion into
new routes
    ** Brokerage says BLDE may emerge as the leader of
'ride-sharing in the skies' similar to Uber  UBER.N  and Lyft
 LYFT.O  in ground mobility
    ** Says co's business will be further improved by the
introduction of electric vertical takeoff and landing aircraft
(eVTOLs)or electric vertical aircraft (EVA) by mid-decade
    ** JPM says co's usage of third-party aircraft owner
operators makes co's business "capital light, and the cost
structure largely variable, such that Blade route services can
be profitable as they scale from low volumes"
    ** "Blade’s model does not depend on the success of any one
or a handful of EVA companies" - JPM
    ** Avg.rating is "buy"; median PT is $16 - Refinitiv data
    

 (Reporting by Siddarth S)
 ((Siddarth.s@thomsonreuters.com;))