EHang Shares Slide as JPMorgan, UBS Cut Ratings; Buyback Plan Set at Up to $30 Million

EHang Holdings’ U.S.-listed shares fell to $5.52 on July 8, down about 35% from the $8.48 opening price on June 7, a day before the company released its first-quarter results, according to Jiemian News. JPMorgan downgraded EHang to underweight from neutral and cut its price target to $4.4 from $9.7, while UBS analyst Shen Wei downgraded the stock to neutral from buy and lowered the target to $11.10 from $21, citing delays in commercialization of eVTOL operations in Hefei and Guangzhou with no clear timetable. UBS also pushed back its breakeven expectation to 2029-2030 from 2026-2027. In the first quarter, EHang delivered four EH216-series aircraft, down 63.6% year on year, and delivered zero VT35 units. Revenue was about 25.7 million yuan, roughly flat year on year, while net loss widened 61.2% to 126 million yuan; cash and short-term investments totaled about 1.027 billion yuan as of end-March. The company maintained its full-year revenue guidance of about 600 million yuan. Jiemian News also reported market rumors of layoffs, with a former employee claiming the headquarters planned to cut 50% of staff and factories 80%, though EHang did not confirm. On June 8, EHang said its board approved a share repurchase program of up to $30 million over 12 months.