Shares of EHang Holdings Ltd (EH) are surging 5.61% in pre-market trading on Monday, following a significant upgrade from Deutsche Bank. The Chinese autonomous aerial vehicle (AAV) company is attracting investor attention as analysts express renewed confidence in its potential.

Deutsche Bank has upgraded EHang from Hold to Buy, albeit with a slightly lowered price target of $20, down from $22. The firm cited valuation as the primary reason for the upgrade, suggesting that the recent selloff has created an attractive entry point for investors. This positive assessment from a major financial institution appears to be the key driver behind the stock's pre-market rally.

Adding to the bullish sentiment, FactSet reports that 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 prospects in the emerging AAV market. As investors digest these positive signals, EHang's stock is gaining momentum, potentially setting the stage for a strong trading session ahead.