Archer Aviation (NYSE:ACHR) is accelerating the race in the electric air taxi sector, stepping up to meet the challenge posed by its industry peer, Joby Aviation. The competition between these two eVTOL pioneers intensified last week after Joby claimed a milestone with the first piloted, full-transition eVTOL flights in Dubai. Archer quickly responded, announcing that its Midnight eVTOL aircraft had completed a high-profile flight at Al Bateen Executive Airport in Abu Dhabi just two days later.
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It wasn’t just a quiet test flight, either – senior officials from the UAE’s General Civil Aviation Authority (GCAA), the Abu Dhabi Investment Office (ADIO), the Integrated Transport Centre, Abu Dhabi Aviation, and Abu Dhabi Airports were present at the flight test, alongside representatives from Archer’s regional partners.
Archer is carrying out these test flights in Abu Dhabi during the summer to assess how the aircraft performs during vertical takeoff and landing in extreme heat.
H.C. Wainwright analyst Amit Dayal is encouraged by this latest development, saying, “We believe that the successful flight demonstrates: (1) Archer’s advances toward commercial readiness; (2) design resilience and performance under extreme conditions; and (3) steps toward creating an infrastructure for advanced aviation in Abu Dhabi as evidenced by the support from the Abu Dhabi’s Smart and Autonomous Systems Council (SASC).”
Furthermore, says Dayal, the presence of UAE regulators, investors, and regional partners at the flight serves as a clear indication of Archer’s confidence in the strength of its tech and aircraft.
“We believe that these test flights should help the company in collecting data to support its certification and commercialization plans in the UAE as well as in other regional markets,” Dayal went on to say.
The test flight contributes to Archer’s Launch Edition commercialization initiative in partnership with Abu Dhabi Aviation, which is focused on launching air taxi services in Abu Dhabi. The announcement comes as Archer advances its efforts toward certification and commercialization in the UAE and other markets, building on recent milestones such as regulatory design approval for the country’s first hybrid heliport at the Abu Dhabi Cruise Terminal and active partnerships with major regional operators.
So, down to business, what does this all ultimately mean for investors? Dayal rates ACHR shares a Buy, along with a Street-high $18 price target. There’s a potential upside of 77% from current levels. (To watch Dayal’s track record, click here)
The rest of the Street’s ratings are split into 3 Buys and 2 Holds, all for a Moderate Buy consensus view. Over the next year, shares are expected to appreciate by 15.5%, considering the average price target stands at $11.75. (See ACHR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.