Vertical Aerospace (Vertical Aerospace (EVTL)) shares are getting a little lift Thursday, up about 2.94% in premarket trading after the company announced a partnership with Hyundai WIA to design and build a custom landing gear system for its Valo electric vertical take-off and landing (eVTOL) aircraft.

This isn't just about landing gear. It's about building a supply chain that can actually deliver a flying taxi. Under the deal, Hyundai WIA will handle the end-to-end design and production of the landing gear system, with help from Stirling Dynamics, a UK-based engineering firm. That adds a big-name supplier to Vertical's roster, which already includes Honeywell and Aciturri.

The timing matters. Vertical is gearing up for the critical design review phase of its aircraft development, and having a solid supply chain is a prerequisite for certification and eventual commercialization. With roughly 1,500 pre-orders for the Valo, the company is positioning itself as a serious contender in the emerging electric aviation market.

Technical Analysis

But let's be honest: the stock has had a rough year. Over the past 12 months, shares are down about 54%. Right now, the stock is trading at $2.45, which is 1% below its 20-day simple moving average of $2.49 and 9.7% below its 50-day SMA of $2.72. That suggests the stock has been struggling to find upward momentum.

There is a glimmer of hope, though. The moving average convergence divergence (MACD) is above its signal line, which means the downward pressure is easing. That could be part of the reason for today's premarket pop.

Key levels to watch: resistance at $2.72 (the 50-day SMA) and support at $2.00, a psychological level where buyers have stepped in before.

Analyst Outlook

Analysts are generally bullish on Vertical, with a consensus Buy rating and an average price target of $11.17. That's a long way from $2.45, so there's either a lot of upside or some optimistic assumptions baked in. Recent analyst moves include:

• Cantor Fitzgerald: Downgraded to Neutral on May 7.
• Canaccord Genuity: Buy, raised forecast to $10.50 on April 20.
• D. Boral Capital: Buy, maintained forecast at $12.00 on April 16.

So the Street is mostly positive, even if one analyst pulled back. The partnership with Hyundai WIA could be the kind of tangible progress that helps the stock close the gap to those price targets.

Price Action

Vertical Aerospace shares were up 2.94% at $2.45 during premarket trading on Thursday, according to market data.