Blade Air Mobility has a chance to be the Uber of the skies, according to JPMorgan. Analyst Bill Peterson initiated coverage of the stock with an overweight rating, saying in a note to clients Thursday that Blade has a solid foothold in what should be a fast-growing market of on-demand air travel. "Importantly, as an agnostic user of aircraft, Blade's model does not depend on the success of any one or a handful of [electric vertical aircraft] companies. Blade may emerge as the leader of what can be considered 'ride-sharing in the skies' akin to Uber and Lyft on the ground in what is likely to become an enormous market over time," the note said. The firm said the total market for the industry could be in the tens of billions within a decade. In addition to having a first-mover advantage in the space, the company also has flexibility on costs and the direction of the industry that should allow it to grow more easily, JPMorgan said. "Blade uses third-party aircraft owner operators, acquiring capacity on a pay-as-you-go basis. This makes the business model capital light, and the cost structure largely variable, such that Blade route services can be profitable as they scale from low volumes," the note said. Blade went public through a special purpose acquisition vehicle in December, and the stock has struggled this year as the SPAC market has lost steam. The stock is down more than 20% year to date. JPMorgan set a price target of $16 per share for Blade, which is 82% above where the stock closed on Wednesday. -CNBC's Michael Bloom contributed to this report.
Blade Air Mobility has a chance to be the Uber of the skies, according to JPMorgan.