On May 2, 2023, Lilium, a Germany-based air taxi company, announced its plans to raise up to $250 million in capital, with $100 million already funded at close. This funding will enable Lilium to cover most of the estimated capital needed for its first manned flight. Aceville Pte Ltd, a Tencent-affiliate, will receive 184.2 million Lilium warrants worth $1 per Class A share. Aceville will pre-fund $100 million of the aggregate exercise price of the warrants upon issuance and will contribute a further $75 million if Lilium raises the same amount through equity, debt, or grants from some third parties. Lilium did not disclose the valuation at which it planned to raise the funds.
Following the announcement, Lilium’s U.S.-listed shares surged 43.24% to $0.55 in premarket trading. However, Lilium’s stock has been down 73% since it announced the successful closing of a $119 million capital raise. The company faces two distinct problems: it needs permission to fly and it needs enough cash to cover the runway it requires. While the recent capital raise was expected, it does not provide enough runway for Lilium. In Q3 2022, Lilium’s total cash spend was €69 million, mainly driven by the ramp-up in one-time supplier payments, in line with a target budget of €250 million in 2022. As of the end of Q3, and prior to the recently completed investment round, Lilium’s liquidity stood at €160 million.
LILM Stock Analysis: Fluctuations, Undervaluation, and Future EPS Forecast
On May 2, 2023, LILM stock opened at 0.42 and fluctuated between a low of 0.37 and a high of 0.42. The trading volume was 1,845,704, and the market capitalization was $167.7M. LILM is in the Aerospace & Defense industry, and its earnings growth last year was 62.83%. However, its revenue growth was negative, and there is no information on earnings growth or profitability. The P/E ratio, price/sales ratio, and net profit margin are not available. The price/book ratio is 0.76, suggesting undervaluation. LILM has no listed executives, and its corporate headquarters are not disclosed. The next reporting date is June 6, 2023, and the EPS forecast for this quarter is -$0.18. LILM’s annual revenue for the previous year was $0.00, and its annual profit was -$266.0M.
Lilium NVs stock projected to increase by 160.89% in 12 months, say analysts
On May 2, 2023, Lilium NV’s stock (LILM) had a median target price of 1.00, according to one analyst offering a 12-month price forecast. This represents a significant increase of 160.89% from the stock’s last price of 0.38. The high and low estimates for the stock’s price were also 1.00, indicating a consensus among analysts that Lilium NV’s stock has a lot of potential for growth.