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EHang Holdings Ltd. (NASDAQ:EH) is one of the 15 most promising small-cap industrial stocks under $10.

On June 9, BofA lowered its price target for EHang Holdings Ltd. (NASDAQ:EH) from $16 to $13 while reiterating a Buy rating on the stock. According to the firm, the company reported a first-quarter miss due to decreased sales as well as higher operating costs, and fewer-than-expected eVTOL deliveries. In addition, the company has emphasized that the government procurement process took longer due to internal budgeting procedures.

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On June 8, EHang Holdings Ltd. (NASDAQ:EH) announced that its Board of Directors has authorized a share repurchase program. In line with this program, the company is allowed to repurchase up to $30 million of its common shares or American Depositary Shares during the next 12 months.

Referring to this capital allocation strategy, Huazhi Hu, the Founder, Chairman, and CEO of EHang, has emphasized that the program reflects a strong belief in the long-term growth prospects and in the company’s ability to generate value for its shareholders. Additionally, Mr. Hu mentioned that despite its commitment to grow in the area of safe, unmanned, and sustainable eVTOL vehicles in advanced air mobility, the corporation would keep a prudent capital allocation strategy.

The proposed repurchases may be executed periodically via different ways, such as market transactions, privately negotiated deals, block trades, or other legally permissible methods. The buybacks are expected to be funded primarily from the company’s existing cash balance.

Ehang Holdings Ltd. (NASDAQ:EH) offers an autonomous aerial vehicle (AAV) technology platform to ensure accessibility of secure and eco-friendly air mobility for everyone. Apart from an extensive product portfolio comprising EH216 series, VT series, Falcon B, and GD series, their service offerings also include passenger transportation, logistics, and aerial media solutions.

While we acknowledge the potential of EH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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