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On Tuesday, Cantor Fitzgerald reaffirmed its Overweight rating and $13.00 price target for Archer Aviation Inc. (NYSE: NYSE:ACHR), which has seen its stock surge nearly 195% over the past year. According to InvestingPro data, the stock trades with high volatility, with a beta of 3.13. Analysts at the firm continue to see potential in the company’s long-term growth prospects.
The decision to maintain the Overweight rating is based on a detailed 10-year discounted cash flow (DCF) analysis. Cantor Fitzgerald’s analysts have applied a weighted average cost of capital (WACC) of 12% and a long-term growth rate of 2% in their valuation. The company maintains strong liquidity with a current ratio of 15.8 and holds more cash than debt on its balance sheet.
Cantor Fitzgerald’s analysts reiterated their confidence in the company’s strategic direction and market potential. The firm sees Archer Aviation as well-positioned within its sector.
The $13.00 price target reflects Cantor Fitzgerald’s outlook for the next 12 months. Archer Aviation’s current market performance aligns with the firm’s expectations, supporting their continued positive stance on the stock.
In other recent news, Archer Aviation has faced significant developments that have captured the attention of investors. A report by Culper Research has accused the company of misleading investors about the progress of its eVTOL aircraft, Midnight, citing discrepancies in development milestones and FAA certification progress. The report also criticized Archer’s promotional activities, including a costly Olympics sponsorship, as attempts to improve its image rather than its technology. Despite these allegations, Cantor Fitzgerald has maintained an Overweight rating on Archer Aviation, expressing optimism about the FAA certification process and the company’s partnerships with entities like Anduril and United Airlines. Archer’s recent announcement of being the Official Air Taxi Provider for the LA28 Olympic Games has also been positively received, showcasing the Midnight aircraft as a transportation solution for the event. The company is set to integrate its eVTOL aircraft across Los Angeles during the Games, enhancing its visibility on a global stage. Additionally, Archer is part of a consortium led by Anduril Industries UK to bid for future flight programs, further expanding its reach into civil and defense applications in the UK. These recent developments highlight a mix of challenges and opportunities for Archer Aviation as it navigates the competitive eVTOL landscape.
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