Shares of EHang Holdings Ltd (EH), the Chinese autonomous aerial vehicle (AAV) technology company, are soaring 6.68% in pre-market trading on Monday. The significant uptick comes on the heels of a notable upgrade from Deutsche Bank, which has revised its rating on EHang from Hold to Buy.

Deutsche Bank's upgrade, despite a slight reduction in its price target from $22 to $20, appears to be the primary catalyst for the stock's surge. The bank cited valuation as the key reason for the upgrade, suggesting that the recent selloff in EHang's stock has created an attractive entry point for investors. This new target still implies substantial upside potential from the stock's previous closing price, reinforcing investor confidence in EHang's growth prospects.

The positive sentiment is not limited to Deutsche Bank alone. According to FactSet, EHang currently holds an average rating of Buy among analysts, with a mean price target of $28.02. This consensus view underscores the growing optimism surrounding EHang's position in the emerging AAV market. As investors digest these bullish signals, EHang's stock is gaining momentum, potentially setting the stage for a strong trading session ahead.

EHang Holdings, known for its cutting-edge autonomous aerial vehicle technology, has been attracting increased attention from investors and analysts alike. The company's innovative approach to urban air mobility solutions has positioned it as a potential leader in this rapidly evolving sector. As the market opens, all eyes will be on EHang to see if this pre-market momentum carries through the regular trading session, potentially signaling renewed investor confidence in the company's long-term prospects.