Blade Air Mobility shares (NASDAQ:BLDE) have rebounded strongly, rising about 44% in a month. While these penny stocks (learn more about penny stocks here) have seen significant gains, the average analyst price target suggests that BLDE stock could trend up and deliver above-average returns from current levels.
Blade is an air mobility platform that provides a cost-effective air transportation solution. Helicopters and amphibious aircraft are used for passenger traffic. The company is also a global leader in medical air transport for organ transplants.
Factors that drive growth
BLDE stock’s remarkable recovery can be attributed to its solid performance in the third quarter, where the company achieved positive free cash flow and adjusted EBITDA in the first quarter while maintaining momentum in both the passenger and medical segments. Additionally, Blade Airport, Blade’s flagship urban air mobility service, continued to deliver excellent growth and achieved profitable passenger seat utilization for the first time in the third quarter. The service also saw robust growth in average checkout price per seat.
The company’s solid execution of growth initiatives, coupled with its focus on cost efficiency, bodes well for growth.
What is the forecast for BLDE stock?
Three analysts cover Blade Air Mobility shares and all recommend a buy. Additionally, BLDE stock’s average price target of $8.17 suggests that this penny stock has the potential to rise a whopping 154.52% from current levels.
Blade Air Mobility’s asset-light business model, the strength of its flagship offering and the momentum in its passenger and medical segments provide a solid foundation for growth. The company’s focus on expanding profit margins, optimizing its cost base and adding profitable new businesses such as new organ matching services to maximize free cash flow generation also bodes well for future growth.
While Blade Air Mobility stock offers significant upside potential, as reflected in analysts’ average price targets, investors can use TipRanks’ penny stock screener to find other attractive penny stocks.