Vertical Aerospace Ltd. (NYSE:EVTL) shares are up during Thursday’s premarket session, trading higher by 2.94% as the company has recently announced a partnership with Hyundai WIA to develop a bespoke landing gear system for its Valo electric vertical take-off and landing (eVTOL) aircraft.

This collaboration is seen as a significant step forward in establishing a strong supply chain for Vertical’s next-generation aircraft, which is crucial as the company moves toward certification and commercialization.

Under the agreement, Hyundai WIA will take on end-to-end design and production responsibilities for the landing gear system, supported by Stirling Dynamics, a UK-based engineering firm.

This partnership enhances Vertical’s supplier ecosystem, which already includes major players like Honeywell and Aciturri, as the company prepares for the critical design review phase of its aircraft development.

Technical Analysis

The stock’s 12-month performance shows a decline of 53.97%, indicating a challenging year for investors. Currently, the stock is trading 1% below its 20-day simple moving average (SMA) of $2.49 and 9.7% below its 50-day SMA of $2.72, suggesting it has struggled to maintain upward momentum.

The moving average convergence divergence (MACD) is above its signal line, indicating that downside pressure is easing, which could suggest improving momentum compared to the previous downswing. This positive momentum could be a factor in the current price increase.

  • Key Resistance: $2.72 — a level aligned with the 50-day SMA, which could act as a barrier for further upward movement.
  • Key Support: $2.00 — a nearby level where buyers previously stepped in, reflecting a significant psychological threshold.

The partnership with Hyundai WIA is particularly important as it strengthens Vertical’s supply chain and enhances its capabilities in developing advanced aircraft systems. With approximately 1,500 pre-orders for its Valo aircraft, the company is positioning itself as a key player in the emerging electric aviation market.

Analyst Outlook

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $11.17. Recent analyst moves include:

  • Cantor Fitzgerald: Downgraded to Neutral (May 7)
  • Canaccord Genuity: Buy (Raises forecast to $10.50) (April 20)
  • D. Boral Capital: Buy (Maintains forecast to $12.00) (April 16)

Price Action

EVTL Stock Price Activity: Vertical Aerospace shares were up 2.94% at $2.45 during premarket trading on Thursday, according to Benzinga Pro data.

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