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HUNTINGTON BEACH, Calif. - Archer Aviation Inc. (NYSE:ACHR), a $6.25 billion market cap company with a strong liquidity position and cash exceeding debt levels, has completed two strategic acquisitions aimed at accelerating the development of its next-generation defense aircraft, according to a press release statement issued by the company. The stock has shown remarkable momentum, delivering over 150% returns to investors in the past year, according to InvestingPro data.
The eVTOL (electric vertical takeoff and landing) aircraft manufacturer acquired a patent portfolio and hired key personnel from Overair, a spin-off of Karem Aircraft known for developing high-efficiency tiltrotors. Additionally, Archer purchased composite manufacturing assets and a 60,000-square-foot manufacturing facility in Southern California from Mission Critical Composites.
These acquisitions follow Archer’s December 2024 announcement of a strategic partnership with defense technology company Anduril to co-develop hybrid, autonomous VTOL military aircraft. The company subsequently raised $1.3 billion in capital to pursue both defense and commercial opportunities. With a healthy current ratio of 15.8 and analyst price targets reaching as high as $18, InvestingPro analysis suggests the company is well-positioned for its expansion plans. For comprehensive analysis of defense sector stocks and detailed financial metrics, investors can access Pro Research Reports covering 1,400+ top US equities.
The moves come amid increased government focus on autonomous military systems, with the Pentagon recently requesting a $13.4 billion budget allocation for such technologies.
"The Administration has made it clear: Leading in advanced aviation in both commercial and defense is a national priority," said Adam Goldstein, founder and CEO of Archer, in the press release.
The newly acquired manufacturing facility in Huntington Beach will allow Archer to bring core composite fabrication capabilities in-house, supporting rapid prototyping and iteration for its defense programs, according to the company.
Archer stated that it continues to see growing demand from major allied defense programs worldwide as it expands beyond its initial focus on commercial air taxi development. While the company’s overall financial health score remains in development according to InvestingPro, its strong price momentum score of 2.24 reflects growing investor confidence in its strategic direction. Unlock 10+ additional ProTips and detailed defense sector analysis with an InvestingPro subscription.
In other recent news, Archer Aviation announced that Mark Mesler has stepped down as Chief Financial Officer, with Priya Gupta continuing in the role. This transition comes after Mr. Mesler had been on medical leave since September 2024. Archer Aviation has entered into a transition agreement with Mr. Mesler, which includes a cash payment and accelerated vesting of certain stock units. Meanwhile, Canaccord Genuity has reiterated its Buy rating for Archer Aviation, maintaining a $13.00 price target, and highlighting recent flight tests of the company’s Midnight aircraft. These tests evaluated the aircraft’s performance in extreme conditions as part of Archer’s certification and commercialization plans. Cantor Fitzgerald also reaffirmed its Overweight rating and $13.00 price target following a successful test flight in Abu Dhabi. The test flight at Al Bateen Executive Airport marked a significant step toward commercial deployment in the UAE. The flight focused on evaluating the aircraft’s performance in UAE-specific conditions, with attendance from senior UAE officials and Archer’s regional partners.
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