Vertical Aerospace Ltd. (NYSE:EVTL) shares declined 2.7% in premarket trading Monday after Raymond James lowered its rating on the stock from Market Perform to Underperform, citing financial and competitive concerns.
Raymond James analyst Savanthi Syth pointed to uncertainty surrounding the company’s funding runway and increasing competition within the electric aviation sector. The analyst estimates Vertical has liquidity into mid-June, excluding roughly $92 million still available under its at-the-market offering, assuming flight testing expenses proceed at typical levels.
“We have a lot of respect for this management team that has been transparent and for the progress made by the company thus far, especially under more stringent U.K. CAA requirements. Given enough time and money, we believe Vertical would be successful, but the market has soured on higher risk ventures lately (with the <$500M market cap also a deterrent for institutional investors),” Syth commented.
The note also highlighted rising competitive pressure, particularly after Archer announced plans to establish a U.K. engineering hub in Bristol, which could increase the risk of talent migration. The analyst referenced the departure of Dr. Limhi Somerville, who joined Archer in early 2026, as an example of potential staffing challenges.
Despite the downgrade, Syth noted that Vertical indicated in November it was pursuing an industrial partnership that could include a strategic investment, a move that may help ease market concerns if completed.
The rating change reflects broader investor caution toward higher-risk growth companies and ongoing questions about Vertical Aerospace’s ability to sustain operations without securing additional capital.