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Investing.com -- Cantor Fitzgerald downgraded Joby Aviation (NYSE:JOBY) to Neutral from Overweight given the electric aircraft maker’s recent share price rally and a lack of near-term upside.

The firm said Joby remains one of the best-positioned companies in the electric vertical takeoff and landing (eVTOL) sector, partnerships with Toyota (NYSE:TM), Delta Air Lines (NYSE:DAL) and the U.S. Department of Defense.

But with the stock up nearly 60% in the past three months and almost 90% over the past year, Cantor said valuation now looks stretched.

“We don’t see current levels as a good entry point for investors,” the analysts wrote.

Joby, which ended the first quarter with about $1.3 billion in total liquidity including its Toyota backing, also has one of the highest cash burn rates in the sector.

The company expects to spend between $500 million and $540 million this year.

While Joby reaffirmed plans to begin pilot testing in Dubai by mid-2025 and start carrying passengers in the region in the first half of 2026, Cantor flagged delays in U.S. certification. The firm said it does not expect the company to receive full FAA Type Certification until at least the second half of 2026.

The analysts also noted lingering investor uncertainty around the company’s unit economics, including pricing and deployment costs of its air taxi service.

Shares of Joby have outperformed broader markets in the past year, rising roughly 89% compared to a 12% gain in the S&P 500. It was trading down 3% in premarket trading.

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