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On Tuesday, Cantor Fitzgerald reaffirmed its positive stance on Archer Aviation Inc. (NYSE:ACHR), maintaining an Overweight rating with a price target of $13.00. The endorsement follows recent news from the company about a milestone achievement in its aircraft testing program. The stock, currently trading at $11.26, has shown remarkable momentum with a 15.84% gain in the past week. According to InvestingPro data, analyst targets range from $4.50 to $18.00, with the current consensus being bullish.
Archer Aviation announced last Thursday that it successfully conducted a piloted test flight of its Midnight aircraft, achieving a cruising speed of 125 mph and surpassing an altitude of 1,500 feet. Jeff Greenwood, a former U.S. Marine Corps pilot, was at the controls during this significant test. The company is now preparing for its next challenge, the first piloted transition flight, which is anticipated to take place in the near future. With a market capitalization of $6.18 billion, Archer maintains a strong financial position, holding more cash than debt on its balance sheet.
The test flight marks a pivotal step for Archer Aviation as it progresses in the development of its electric vertical takeoff and landing (eVTOL) aircraft. The successful completion of this flight test is a demonstration of the company’s commitment to innovation and advancing the future of urban air mobility. InvestingPro analysis reveals the company maintains a healthy current ratio of 15.8, indicating strong short-term financial stability. Get access to 12+ additional InvestingPro Tips and comprehensive financial analysis in the Pro Research Report.
Cantor Fitzgerald’s analyst noted the importance of this development for Archer Aviation, highlighting the company’s forward momentum in its testing program. The transition flight, which is expected to occur in the coming weeks, will be another critical test for the Midnight aircraft as Archer Aviation works towards commercial viability.
The $13.00 price target set by Cantor Fitzgerald reflects confidence in the company’s trajectory and its potential in the eVTOL market. Archer Aviation’s shares continue to be monitored by investors as the company moves through its development phases and closer to potential market entry.
In other recent news, Archer Aviation has been the focus of several developments that are capturing investor attention. The company has secured two contracts with the U.S. Department of Defense valued at $142 million for the delivery of up to six Midnight aircraft, intended for missions such as personnel transport and logistics. This follows a partnership with Anduril for defense-related aircraft development. Analysts from H.C. Wainwright have raised Archer Aviation’s price target to $18, citing increased revenue expectations from military sectors, while maintaining a Buy rating. Cantor Fitzgerald also reaffirmed its Overweight rating and $13 price target, indicating confidence in Archer’s strategic direction and growth potential.
However, Archer Aviation is facing scrutiny from a report by Culper Research, which accuses the company of misleading investors regarding the development milestones of its eVTOL aircraft, Midnight. The report alleges discrepancies in testing timelines and questions the authenticity of certain achievements, including a transition flight not meeting FAA criteria. Culper Research also criticized Archer’s promotional activities, suggesting they focus more on image than technological progress. The report further casts doubt on Archer’s ability to achieve FAA certification, raising concerns among investors. These recent developments present a complex picture for Archer Aviation as it navigates both strategic opportunities and significant challenges.
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