Key Highlights

● Barclays upgraded Vertical Aerospace to Equal Weight from Underweight.

● A verified figure for the stock's move was not available.

● Barclays downgraded Joby to Underweight in the same reshuffle.

● Barclays also launched broad aerospace and defense coverage.

Vertical Aerospace (NYSE:EVTL) was in focus on Friday, October 9, after Barclays (NYSE:BCS) upgraded the British electric aircraft developer to Equal Weight from Underweight. A verified figure for the stock's move on the day was not available.

An Equal Weight rating means the analyst expects the stock to perform roughly in line with its sector or the broader market. Moving up from Underweight removes a negative call, which can matter for a small, speculative company whose shares are sensitive to shifts in sentiment.

Barclays rearranges the eVTOL group

The Vertical call was part of a bigger shake-up of Barclays' views on electric vertical take-off and landing, or eVTOL, companies. On the same day, Barclays analyst Anthony Valentini downgraded Joby Aviation (NYSE:JOBY) to Underweight from Equal Weight and cut its target to $4 from $6, according to market data. Joby shares fell sharply and were trading around $5.26 near midday.

Barclays also moved Archer Aviation (NYSE:ACHR) to Overweight and raised its target to $8 from $4.50. one source described that as an upgrade, while another said Barclays assumed coverage at Overweight. Archer rose to about $4.99 by late morning, and Chinese eVTOL company EHang also gained.

Separately, a federal Jury in Tampa awarded Aerosonic about $116.9 million, finding that Joby Aero breached a confidentiality agreement and misused trade secrets. Joby said it intends to "vigorously pursue all available post-trial and appellate remedies."

The calls left Barclays with differing ratings across the main players in the group.

What Vertical Aerospace is building

Vertical Aerospace, based in Bristol, England, is developing an electric aircraft designed to carry a pilot and several passengers on short regional and urban trips, with far less noise and no direct emissions compared with helicopters. Like its rivals, it has not yet begun commercial operations and is working toward certification with aviation regulators. Its progress depends heavily on funding and on hitting flight-test milestones.

A wide aerospace and defense launch

Barclays' eVTOL calls came alongside a broad coverage launch in aerospace, defense and space. The bank initiated SpaceX (NASDAQ:SPCX) at Overweight with a $254 target, Rocket Lab at Overweight with an $85 target, Palantir (NASDAQ:PLTR) at Overweight with a $265 target and Lockheed Martin at Equal Weight with a $554 target, according to market data. SpaceX rose $2.00 to $162.57 on a day dominated by its plan to buy nationwide 800 MHz spectrum from Grain Management for about $8 billion, a deal that needs FCC approval.

The broader market

Stocks rose overall. The S&P 500 gained 46.18 points to 7,811.54, finishing about 7 points below its record close. The Dow climbed 423.31 points to 51,654.95 and the Nasdaq Composite advanced 172.83 points to 27,366.17. On the NYSE, gainers outnumbered losers by about 1.65 to 1.

Rates remain a challenge for pre-revenue companies that rely on outside capital. With the 10-year Treasury Yield near a 24-year high, the Fed's September increase, its first since 2023, keeps borrowing costs elevated. Fed Governor Christopher Waller said Thursday, "The hikes do not need to come at consecutive meetings, but they should be in place in an acceptable period of time."

Flight Testing and Funding Updates Are Vertical's Next Catalysts

Investors will be watching for updates on Vertical's flight testing, certification and funding, and for any further analyst reactions across the eVTOL group following Barclays' calls. On the macro side, Stock exchanges stay open on Monday, October 12, though the Bond Market observes Columbus Day. The September Consumer Price Index is due Wednesday, October 14, bank Earnings run from October 13 to 16, and the Fed meets October 27 and 28.