Archer conducts first Midnight eVTOL test flight in Abu Dhabi

ABU DHABI - Archer Aviation (NYSE:ACHR), the $6.26 billion market cap eVTOL company whose stock has surged over 165% in the past year, conducted its first test flight of the Midnight electric vertical takeoff and landing (eVTOL) aircraft at Al Bateen Executive Airport in Abu Dhabi on Wednesday, advancing the company’s plans for commercial air taxi operations in the UAE. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 15.8.

The flight test focused on evaluating the aircraft’s vertical takeoff and landing performance in UAE-specific conditions, including high temperature, humidity, and dust exposure. Officials from the UAE General Civil Aviation Authority, Abu Dhabi Investment Office, Integrated Transport Centre, Abu Dhabi Aviation, and Abu Dhabi Airports attended the demonstration. While the company is not yet profitable, InvestingPro analysis shows it holds more cash than debt on its balance sheet, positioning it well for continued development.

"Our initial test flight operations in the UAE represent a critical milestone as we prepare for our commercial deployment in Abu Dhabi," said Adam Goldstein, CEO and Founder of Archer Aviation, according to the press release. "Testing our aircraft in actual operating conditions in the middle of summer provides us with the data we need to progress our commercial and certification efforts."

The test supports Archer’s Launch Edition commercialization program with Abu Dhabi Aviation, which aims to establish air taxi services in the emirate. This initiative follows the regulatory design approval for the UAE’s first hybrid heliport at Abu Dhabi Cruise Terminal.

H.E. Badr Al-Olama, Director General of the Abu Dhabi Investment Office, stated that the flight "marks a significant step towards realising Abu Dhabi’s ambition to lead the world in advanced urban air mobility."

Following this initial flight, Archer plans to expand its testing program in the region to gather additional data supporting certification and commercialization efforts in both the UAE and other markets. With analyst price targets ranging from $4.50 to $18.00 per share, investors can access detailed financial analysis and 12 additional ProTips through InvestingPro’s comprehensive research report.

In other recent news, Archer Aviation has made significant strides with an $850 million funding round through a direct offering of 85 million shares of its Class A common stock at $10 per share. This capital infusion has bolstered Archer’s financial position, providing a pro forma liquidity of approximately $2 billion to support its development of electric vertical takeoff and landing (eVTOL) aircraft. Canaccord Genuity has lowered its price target for Archer Aviation to $13.00 from $13.50 while maintaining a Buy rating, following the company’s capital raise announcement. The funding aligns with the White House’s eVTOL Integration Pilot Program (eIPP), which aims to accelerate the deployment of eVTOL aircraft in the U.S.

Cantor Fitzgerald has reiterated its Overweight rating and $13.00 price target on Archer Aviation, emphasizing the importance of the company’s strategic partnerships with entities like the Department of Defense and United Airlines. These collaborations are expected to enhance Archer’s commercialization efforts in the urban air mobility market. Archer’s recent successful piloted test flight of its Midnight aircraft, reaching a cruising speed of 125 mph, marks a key milestone in its flight testing program. In a separate development, Tradr ETFs has launched two new single stock leveraged ETFs targeting quantum computing companies, including Rigetti Computing Inc., allowing investors to gain leveraged exposure.

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