Goldman Sachs recently made a bold call in the electric vertical takeoff and landing space. The investment firm named BETA Technologies (BETA) as its top pick while taking a cautious stance on competitors.
The financial services giant initiated coverage with a “Buy” rating on BETA, citing the company’s strategic approach to certification and its vertically integrated business model. It also assigned “Neutral” ratings to Archer Aviation (ACHR) and Eve Holding (EVEX), while assigning a “Sell” rating to Joby Aviation (JOBY) despite its industry leadership position.
Goldman is bullish on BETA’s stepwise certification strategy and explained, “Its stepwise approach to certification with its CTOL aircraft brings forward revenue and accelerates the learning curve without sacrificing the EVTOL timeline. BETA is an aircraft OEM and parts supplier, the most attractive business model in aviation. It has partnered with GE to build a hybrid vehicle for defense and has taken a team approach to selling motors and chargers to competitors, which will help it scale.”
BETA operates as an aircraft manufacturer and parts supplier, a business model Goldman views as the most attractive in aviation. BETA has also partnered with General Electric (GE) to develop a hybrid vehicle for defense applications and sells motors and chargers to competitors, helping it achieve scale.
Goldman analyst Anthony Valentini noted that recent technology advancements and the current administration’s focus on reshoring manufacturing provide better visibility into certification timelines for the sector.
However, the analyst emphasized that competition remains fierce and no single winner will dominate the market. Goldman favors companies with aftermarket-rich models, vertical integration, clear revenue visibility, and the capacity to meet future demand.
Valued at a market cap of almost $6 billion, BETA Technologies’ stock went public last month at $34 per share. It raised over $1 billion through an upsized initial public offering that saw strong investor demand.
The stock began trading on the New York Stock Exchange under the ticker symbol BETA in early November, with Goldman Sachs and Morgan Stanley serving as lead underwriters. The company is now ramping up its autonomous flight technology development through a partnership with Near Earth Autonomy. BETA has logged over 1,000 hours of uncrewed flights on subscale aircraft, demonstrating a range exceeding 158 nautical miles on a single charge.
