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Investing.com - Canaccord Genuity has reiterated its Buy rating and $13.00 price target on Archer Aviation Inc. (NYSE:ACHR), maintaining its positive outlook on the electric vertical takeoff and landing (eVTOL) aircraft manufacturer. The stock, currently trading at $10.02, has shown remarkable strength with a 124% return over the past year. According to InvestingPro data, analyst targets for ACHR range from $4.50 to $18.00, reflecting diverse views on the company’s potential.
The company recently conducted flight tests designed to evaluate its Midnight aircraft’s performance in extreme heat, humidity, and dust conditions, according to Canaccord Genuity. Management plans to expand the flight envelope to support certification and commercialization plans, likely including demonstration routes between key vertiports and airports in Abu Dhabi. InvestingPro analysis shows the company maintains a strong financial position with more cash than debt on its balance sheet, providing important flexibility during this critical development phase.
Archer is working to accelerate its aircraft production rate at its Covington, Georgia facility to approximately two aircraft per month by the end of the year. This production increase is considered important for generating near-term revenue from additional Launch Edition customers, including Ethiopian Airlines and PT. IKN, ahead of certification. With a current market capitalization of $6.35 billion and a healthy current ratio of 15.8, the company appears well-positioned to fund its production ramp-up. For deeper insights into Archer’s financial health and growth potential, access the comprehensive Pro Research Report available on InvestingPro.
The company will need to produce six type-conforming aircraft for Federal Aviation Administration (FAA) pilots to operate during Type Inspection Authorization trials, which management expects to take 9-12 months. Additionally, the Department of Transportation is expected to initiate the USA’s eVTOL Integration Pilot Program within 180 days of the June 6th Unleashing American Drone Dominance Executive Order.
Canaccord Genuity’s $13 price target is based on a discounted cash flow analysis through 2035, reflecting the firm’s long-term outlook on Archer’s business potential. While the company is not currently profitable, with a return on invested capital of -59%, its strong cash position and market momentum suggest potential for long-term value creation.
In other recent news, Archer Aviation has made significant strides with its first successful test flight of the Midnight eVTOL aircraft in Abu Dhabi. The test, conducted at Al Bateen Executive Airport, focused on the aircraft’s vertical takeoff and landing performance under challenging conditions like high heat and humidity. Archer aims to use this data to advance its certification and commercialization efforts in the UAE and other markets, marking a critical step in its Launch Edition commercialization program with Abu Dhabi Aviation. The company plans to expand its testing operations in the region as it works toward commercial deployment. Additionally, Cantor Fitzgerald has reiterated its Overweight rating and $13.00 price target on Archer Aviation, citing strategic partnerships with entities like Anduril, the Department of Defense, and United Airlines as key to its market differentiation. These collaborations are expected to enhance Archer’s commercialization efforts and expand its total addressable market. In related developments, Tradr ETFs has launched leveraged funds targeting quantum computing stocks, including those for Archer Aviation. These products are designed for short-term trading and offer leveraged exposure without the need for margin accounts.
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