Raymond James has downgraded Vertical Aerospace to Underperform from Market Perform, citing mounting concerns about the company's ability to secure funding at a critical development stage. The brokerage acknowledged management's progress under the U.K. Civil Aviation Authority's stringent certification standards but warned that Vertical's liquidity runway appears limited.

Excluding roughly $92 million remaining under its at-the-market offering program, Raymond James forecasts cash lasting through mid-June, assuming normal flight testing spending. The firm noted that investor appetite for higher-risk ventures has weakened, particularly for companies with market capitalizations below $500 million. This comes as Archer Aviation announced plans to base its U.K. engineering hub in Bristol, raising competitive pressure for engineering talent.

The brokerage also highlighted the planned move of Dr. Limhi Somerville to Archer in early 2026 as a potential risk factor for Vertical. While the company indicated in early November it was working to secure an industrial partner that could include an investment, Raymond James does not expect a takeover by a competitor at this stage. The firm maintains Archer Aviation as its only Outperform-rated eVTOL stock, citing its relative valuation and less capital-intensive commercialization strategy.