Archer Aviation (ACHR) is cruising a little higher this week, not just in altitude, but also in investor sentiment. On Tuesday, Cantor Fitzgerald analyst Andres Sheppard reaffirmed his confidence in the electric aircraft developer, maintaining a Buy (Overweight) rating and a price target of $13.00. Archer’s stock has already gained nearly 15% over the past week, buoyed by both strong momentum and a major development milestone.
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Buy Ratings Follow Key Milestone
The upgrade comes shortly after Archer announced it successfully completed a piloted test flight of its flagship Midnight aircraft. During the flight, the aircraft reached a cruising speed of 125 mph and climbed above 1,500 feet, a key achievement for its electric vertical takeoff and landing (eVTOL) ambitions. Piloting the flight was Jeff Greenwood, a former U.S. Marine Corps aviator, marking a symbolic step forward in Archer’s journey toward commercial air taxi service.
Next up for the company: a “transition flight” that would shift the aircraft from vertical to horizontal flight. It’s a technical milestone with big implications, and Archer hopes to clear it soon.
Cantor Fitzgerald isn’t the only bull. H.C. Wainwright recently raised its price target on Archer to $18.00, citing potential gains from military contracts. Archer has already inked two deals with the U.S. Department of Defense worth up to $142 million for the delivery of six Midnight aircraft. These contracts, and a defense partnership with Anduril, have added new momentum to Archer’s narrative.
Culper Research: The Confetti Crashers
Still, it’s not all clear skies. Short-seller Culper Research recently accused the company of overstating its achievements and questioned the legitimacy of its test flight milestones. The report casts doubt on Archer’s path to FAA certification, a crucial hurdle for commercial rollout.
Financially, Archer appears strong, with a current ratio of 15.8 and more cash than debt. Analyst targets for the stock now range from $4.50 to $18.00, with a consensus leaning bullish.
Is Archer Aviation Stock a Good Buy?
Until very recently, Archer Aviation held a Strong Buy rating, but it has since moved to a Moderate Buy rating, despite recent encouraging developments. The average ACHR stock price target is $11.83, implying a 2.79% downside.
