Archer Aviation (ACHR) held its second-quarter earnings call last week. After the stock declined at first, it started drawing bullish attention from Wall Street as analysts continued to back the stock. The stock closed at $9.82 on Friday.
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Canaccord’s Take on Archer
The latest to reaffirm his Buy rating is Canaccord’s four-star analyst Austin Moeller, with a $13 price target, slightly lower than his prior $13.50 view. Despite the decrease, Moeller points to the company’s steady production progress and strong balance sheet. He noted that even with a considerable adjusted EBITDA loss in the second quarter, Archer has expanded output of its Midnight aircraft at its sites in California and Georgia. The push is supported by a $1.7 billion cash reserve that was recently strengthened through a capital raise, giving the company flexibility to continue its growth plan. At the same time, Archer Aviation is advancing toward the final stage of certification with the Federal Aviation Administration, which remains a key hurdle for the air taxi market. Moeller highlighted the company’s work to refine manufacturing and improve efficiency, while also noting the potential for revenue from Launch Edition customer programs.
Yet, some risks remain. Timelines for execution have moved at a rapid pace, and there is a chance the company may miss its own targets. Meanwhile, the latest quarter showed an adjusted EBITDA loss of $118.7 million and a free cash outflow of about $122 million.
Overall, Archer Aviation holds strong support from analysts who see progress in production, certification, and partnerships. However, investors also face the reality of continued cash burn and regulatory steps still ahead.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on eight recent ratings, Archer Aviation boasts a “Strong Buy” consensus with an average 12-month price target of $12.06. This implies a 22.81% upside from the current price.
