Goldman Sachs has reduced its recommendation on EHang Holdings, moving the stock from Buy to Neutral and cutting its 12-month price target to $7.30 from $16.90. The bank cited a combination of valuation concerns and a lengthier timeline for bringing the company's EH216-S electric vertical takeoff and landing aircraft into commercial operations.
In its note, Goldman said earlier assumptions about autonomous aerial vehicle shipments proved overly optimistic. The brokerage pointed to postponed launches of commercial ticketed services and described EHang's overseas expansion and its VT-35 aircraft program as still being at an early stage, factors that prompted the adjustment to both rating and target price.
At the same time, Goldman continued to highlight structural tailwinds for China’s eVTOL sector. The bank noted expanding commercial use cases - including sightseeing, logistics and prospective air taxi services - and said regulatory developments have strengthened the operating environment for low-altitude aviation. Specifically, Goldman referenced the Civil Aviation Law and the 15th Five-Year Plan as contributing to a firmer regulatory framework, and observed that some provincial governments have offered subsidies to support eVTOL manufacturing and operations.
Despite the downgrade, the brokerage maintained a constructive medium-term revenue outlook for EHang. Goldman projected revenue to expand at a compound annual growth rate of 77% between 2026 and 2028, driven by higher aircraft shipments and improving margins. Nevertheless, the firm trimmed its 2027 and 2028 earnings forecasts to reflect slower commercialization, lower near-term revenue expectations and increased research and development spending.
Goldman outlined potential triggers that could prompt a re-rating of EHang's stock. Accelerated commercialization of aircraft, stronger-than-expected market demand for new aerial-vehicle technologies, and faster development of the supporting ecosystem were all cited as possible catalysts for revising the outlook upward.
Market and sector implications
- eVTOL manufacturers and suppliers may face volatility in near-term valuations as commercialization timelines are reassessed.
- Operators in sightseeing, logistics and nascent air taxi markets will be affected by the pace of regulatory and infrastructure development.
- Provincial subsidy programs and national regulatory changes remain important drivers for the sector's deployment schedule.
Bottom line
Goldman’s downgrade signals a reassessment of EHang’s short-term commercial prospects while leaving intact a positive view on the structural opportunity in China’s low-altitude economy. The note reduces near-term earnings expectations and price targets to reflect delays and elevated development costs, even as growth potential over the mid-term remains substantial in the brokerage’s view.