Missed the webinar? Here are Investing.com’s top 10 stock picks for 2026
Investing.com - Goldman Sachs initiated coverage on Archer Aviation Inc. (NYSE:ACHR) with a Neutral rating and a price target of $11.00, representing 41% upside from the current price of $7.79. According to InvestingPro data, analyst targets for ACHR range widely from $4.50 to $18, reflecting mixed sentiment about the company’s prospects.
The investment bank noted that Archer has rapidly narrowed the gap with competitor Joby Aviation in its certification efforts for the Midnight aircraft by outsourcing 80% of parts to aerospace suppliers with certification experience.
Goldman Sachs highlighted that this outsourcing strategy has resulted in lower research and development spending and reduced time to build an operational aircraft, though it sacrifices higher margin aftermarket opportunities in the medium term.
The firm believes Archer’s aircraft may prove to be the most capable based on takeoff weight and payload metrics, and views positively the company’s move away from the aircraft operator model, which Goldman considers the most regulatory and capital intensive segment of the value chain.
While Goldman Sachs sees potential upside in Archer’s defense business through its partnership with Anduril, it notes this division remains in its early stages with no established Department of Defense programs, making it difficult to evaluate. InvestingPro data shows Archer holds more cash than debt with a strong current ratio of 18.19, providing financial flexibility as it navigates certification challenges. Despite showing a significant 4.7% return last week, the company remains unprofitable with EBITDA of -$601.6M. Discover Archer’s complete financial health score and 8 additional ProTips with an InvestingPro subscription.
In other recent news, Archer Aviation has completed flight testing of its Midnight electric vertical takeoff and landing (eVTOL) aircraft in the United Arab Emirates. The tests, conducted at Al Ain Airport, demonstrated the aircraft’s capabilities in desert conditions, marking a significant step in Archer’s Launch Edition program for the region. Additionally, The Helicopter Company, a subsidiary of Saudi Arabia’s Public Investment Fund, has signed an agreement with Archer and Red Sea Global to test and potentially integrate eVTOL aircraft in Saudi Arabia. This collaboration will evaluate aircraft performance and operational feasibility under real-world conditions.
In financial developments, Canaccord Genuity has raised its price target for Archer Aviation to $13.00, maintaining a Buy rating. This decision follows Archer’s involvement in various aviation projects, including collaborations on eVTOL powertrains and AI-powered air traffic management tools. Cantor Fitzgerald has also reiterated its Overweight rating with a $13.00 price target, citing Archer’s progress with its Launch Edition Program and agreements with Abu Dhabi Aviation. On the legal front, Archer faces a complaint from Joby Aero over allegations of trade-secret misappropriation related to the hiring of a former Joby employee. Archer disputes these allegations and plans to defend itself vigorously.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.