Despite Archer Aviation’s (ACHR) step-by-step build-up toward commercial flight, the stock remains in a pre-commercial, pre-revenue stage. As long as that remains true, its valuation will stay speculative. That makes the shares volatile, especially in periods of mixed sentiment or shifting momentum across the electric vertical take-off and landing space.
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This past week, shares of Archer Aviation fell 14.53% in the last five trading days, closing at $9.64 on August 1. The drop followed several sessions of steady selling, with no major news from the company itself. Trading volume remained light, while the put-call ratio climbed, signaling increased interest in downside protection. The company’s second-quarter earnings are due on August 11.
JPM Highlights Continued Cash Burn
On the analyst front, JPMorgan’s analyst Bill Peterson raised his price target on Archer Aviation from $9 to $10 but maintained a Neutral rating. The firm acknowledged recent momentum in the eVTOL sector but called it “irrational exuberance.” While the Trump administration’s latest executive order signals long-term government support for the category, Peterson does not expect it to change the company’s earnings outlook in the near term. The firm highlighted continued cash burn and potential delays in revenue generation as key risks.
Technically, the stock is sending mixed signals. The Moving Average Convergence Divergence (MACD) indicator suggests that Archer is a Buy. However, the 20-day and 50-day exponential moving averages suggest otherwise. Both are above the current price, indicating a short-term sell. Overall technical sentiment is neutral.
With shares trading below both key moving averages and a cautious tone from one of the company’s core covering analysts, investors appear to be recalibrating their near-term expectations.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average 12-month price target of $11.92. This implies a 23.65% upside from the current price.
