Archer Aviation (ACHR) gained fresh support as Austin Moeller at Canaccord Genuity raised his price target to $13 from $12, pointing to an over 80% upside, following the firm’s review of the latest shift in the company’s plan. He kept his Buy rating and said the new target reflects the new powertrain move that Archer shared this week. In his view, this step adds a clear source of sales that sits next to the firm’s plan to launch its electric aircraft for short city trips.
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Meanwhile, ACHR shares climbed handsomely on Friday, rising 4.51% to close at $7.18.
The Analyst’s Take on Archer
Moeller pointed to the choice by Archer to offer its battery electric powertrain to a third party for the first time. As a result, he said this change signals a new stream of cash that can help the firm build steady growth. He also noted that the first use of the tech will be in the Omen air unit, which is built by Anduril Industries and EDGE Group in the United Arab Emirates. The unit uses Lattice mission AI from Anduril and has an order of fifty units from the United Arab Emirates. This use of Archer tech shows that the firm now has a path in both civilian and defense applications.
Moeller set the new target soon after a mix of views from other firms. The past two weeks saw cuts in price targets from Needham and JP Morgan as both firms took a cautious view of the near-term trend. Yet Moeller said the new powertrain plan gives Archer a new part of its plan that can help with long-term scale. He added that the firm still aims to launch its first city trips in 2025 and is still working on ways to cut costs and add speed for short city paths.
Moeller’s update aligns with the firm’s plan to forge an additional revenue path, enabling Archer to build on this new sales source and meet its goals for first trips in 2025.
Archer aims to build a fleet of electric aircraft that rise and land with a short lift and serve quick city trips at a lower cost. The firm plans its first trips in 2025. Now that Archer plans to sell its powertrain to others, the firm has a new part of its plan that may help widen its role in the flight tech space.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s steep decline in 2025, the Street’s analysts remain optimistic about the company’s prospects. Based on five recent ratings, Archer Aviation boasts a “Strong Buy” consensus with an average ACHR stock price target of $12.40. This implies a 72.70% upside from the current price.
