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Investing.com - Cantor Fitzgerald maintained its Overweight rating and $13.00 price target on Archer Aviation Inc. (NYSE:ACHR) on Monday, citing the company’s strategic partnerships as key differentiators in the market. The stock, currently trading at $10.04, has shown remarkable momentum with a 174% return over the past year, though InvestingPro analysis suggests it’s currently trading above its Fair Value.
The research firm highlighted Archer’s partnerships with Anduril, the Department of Defense, United Airlines, and Stellantis (NYSE:STLA) as crucial elements that should help the company advance its commercialization efforts.
Cantor Fitzgerald noted these collaborations would likely increase Archer’s total addressable market (TAM) as the company continues to develop its air mobility solutions.
The firm specifically pointed to how these partnerships would facilitate Archer’s operations and manufacturing capabilities, providing the company with important advantages in the emerging electric vertical takeoff and landing (eVTOL) sector.
Archer Aviation has been working to position itself in the growing urban air mobility market, with its partnerships spanning defense, commercial aviation, and automotive manufacturing sectors to support its development and eventual commercial rollout.
In other recent news, Archer Aviation has successfully raised $850 million through a direct offering of 85 million shares of its Class A common stock at $10 per share. This capital infusion has strengthened Archer’s financial position, providing the company with a pro forma liquidity of approximately $2 billion. The funds are intended to support accelerated manufacturing and certification efforts, particularly in light of the anticipated participation in the eVTOL Integration Pilot Program (eIPP) announced by the White House. This program aims to expedite the deployment of electric vertical takeoff and landing aircraft in the United States.
Archer Aviation also announced a milestone achievement with the successful piloted test flight of its Midnight aircraft, which reached a cruising speed of 125 mph and a maximum altitude of over 1,500 feet. The company is preparing for its first piloted transition flight in the coming weeks. Analyst firms have responded to these developments, with Cantor Fitzgerald maintaining an Overweight rating and a $13 price target, while H.C. Wainwright increased its price target to $18, citing the potential for growth in the eVTOL market and military applications.
Furthermore, Archer has formed a partnership with Anduril to develop aircraft for defense-related uses, aligning with its contracts with the U.S. Department of Defense. These contracts, worth $142 million, involve the delivery of up to six Midnight aircraft for the U.S. Air Force. Canaccord Genuity also maintains a Buy rating on Archer, noting the company’s strengthened cash balance from the recent capital raise.
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