Lilium N.V. Downgraded to Neutral with Significant Upside Potential

A recent report revealed that Cantor Fitzgerald downgraded Lilium N.V. from Overweight to Neutral. Despite this, the forecast suggests a promising upside potential of 175.43%. However, projected revenue remains at zero with an EPS of -0.62, raising concerns about the company's financial stability.

Date: 20-10-2024

AI Rating: 5

The report detailed a downgrade of Lilium N.V. by Cantor Fitzgerald from an Overweight to a Neutral outlook. This shift indicates analysts’ concerns regarding the company’s performance and potential.

Despite the downgrade, the average one-year price target forecast for Lilium N.V. suggests a significant upside of 175.43% from its current stock price of 0.72 GBX/share. This large anticipated increase could potentially attract investors, yet it also raises questions about the credibility of the forecast given the recent downgrade.

In terms of earnings analysis, the projected annual revenue for Lilium N.V. is reported to be at 0MM, indicating no expected revenue generation, which is a serious red flag for investors looking for growth opportunities. Furthermore, the non-GAAP EPS is estimated at -0.62, signaling a net loss. This negative EPS suggests ongoing financial difficulties that could deter investment.

On the institutional sentiment front, there has been an increase in the number of funds reporting positions in Lilium N.V., up 12.07% in the past quarter. Total shares owned by institutions have risen significantly, by 167.81%, indicating growing interest from institutional investors. However, the average portfolio weight dedicated to Lilium N.V. remains low at 0.12%.

Some notable institutional movements include B. Riley Financial, which has significantly increased its shareholdings. This might reflect confidence in the company's long-term potential. Conversely, a few institutions like AWM Investment have decreased their portfolio allocation in Lilium N.V., demonstrating a mix of sentiment among institutional investors.

The key elements that could affect stock prices for Lilium N.V. include the substantial price growth expectation amid a challenging revenue and earnings landscape. Investors may need to weigh the risks associated with the negative projected earnings against the potential upside indicated by analysts.

Stocks: LSE:0AB4