Last Updated: 15 Sep 2024
Executive Summary
Archer Aviation Inc. (ACHR) is a pre-revenue company developing electric vertical takeoff and landing (eVTOL) aircraft. The company has a market capitalization of $1.18 billion and is facing significant losses. Despite these challenges, analysts remain optimistic about Archer's long-term prospects, with a consensus target price of $9.50.
Company Overview
Archer Aviation was founded in 2018 and is headquartered in Palo Alto, California. The company is developing the Maker, an eVTOL aircraft designed for urban air mobility. The Maker is expected to have a range of 60 miles and a top speed of 150 mph. Archer plans to begin production of the Maker in 2024.
Fundamental Analysis
Archer Aviation is a pre-revenue company and is not yet profitable. The company reported a net loss of $407.6 million in 2022. Archer's losses are primarily due to research and development expenses. The company expects to continue to incur significant losses in the near term as it invests in the development and production of the Maker.
Archer's balance sheet is relatively strong. The company has $430.7 million in cash and equivalents and no debt. Archer also has a backlog of over 500 orders for the Maker.
Technical Analysis
Archer Aviation's stock price has been trending lower in recent months. The stock is currently trading at $3.31, below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
Archer Aviation's stock is likely to remain volatile in the short term. The company is facing significant challenges, including production delays and regulatory hurdles. However, Archer's strong balance sheet and backlog of orders provide some support for the stock.
Long Term Outlook
Analysts are optimistic about Archer Aviation's long-term prospects. The company is well-positioned to capitalize on the growing demand for urban air mobility. Archer's Maker is a promising aircraft that could revolutionize the way people travel in cities.
Analyst Recommendations
Six analysts have issued buy ratings on Archer Aviation, while one analyst has issued a hold rating. The consensus target price is $9.50.
