Morgan Stanley downgraded EHang Holdings to Equalweight from Overweight. The investment bank lowered its price target for the company to $5.30 from $7.70.
Analysts cited increasing uncertainty regarding the regulatory timeline for autonomous aerial vehicle commercialization. This decision follows EHang’s withdrawal of its 2026 revenue guidance.
The Civil Aviation Administration of China adopted a more conservative stance following a recent unrelated aviation incident. Analysts noted that EHang’s path to profitability remains dependent on regulatory approvals outside of its control.