Canaccord Genuity four-star analyst Austin Moeller lowered the price target on Archer Aviation (ACHR) to $12 from $13 after the company reported mixed third-quarter results. Still, Moeller kept a Buy rating on the stock. The change in price target follows news that Archer’s adjusted EBITDA loss came in at the low end of management’s guidance. The loss widened about 24% year-over-year, due in part to rising costs as the company moves closer to full operations.
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Even with the larger loss, Archer beat earnings expectations. The net loss was $0.20 per share, compared to the forecasted $0.30. That also showed some improvement from the $0.29 loss in the same period last year. However, operating expenses under GAAP rose to $175 million. The company ended the quarter with $1.64 billion in cash and raised another $650 million shortly after, bringing total liquidity to about $2.2 billion.
Meanwhile, ACHR shares recovered slightly on Tuesday, rising 5.80% to close at $8.94.
Airport Deal, Olympics, and Global Growth
Alongside the earnings report, Archer announced a plan to buy Hawthorne Airport in the Los Angeles area for $126 million in cash. The airport sits about three miles from the Los Angeles International Airport and includes an 80-acre site with space for future growth. This move sets the stage for Archer to run air taxi services in the region, especially as it prepares to serve the 2028 Olympic and Paralympic Games.
Cantor Fitzgerald four-star analyst Andres Sheppard called the deal surprising in a good way. He believes the site will play a key role during the Olympics and beyond. The airport’s location near SoFi Stadium and Downtown Los Angeles could give Archer a strong presence in one of the country’s busiest markets.
Global Expansion, Milestones, and Expected Revenue
Archer continues to expand outside the U.S. as well. The company has started early deliveries of its Midnight aircraft to Abu Dhabi. It also expects to reach certification in the United Arab Emirates as soon as the third quarter of 2026. Archer signed deals with both Abu Dhabi Aviation and the Abu Dhabi Investment Office. It has also built ties with Korean Air and Japan Airlines, both of which named Archer as their preferred air taxi provider.
During the quarter, Archer said its Midnight aircraft completed key test flights. These included trips longer than 55 miles and speeds over 150 miles per hour. It also bought patents from rival Lilium (LILMF) to expand its control and propulsion systems.
Looking ahead, Archer expects to begin generating revenue in early 2026. For the current quarter, the company guided to an adjusted EBITDA loss between $110 million and $140 million. Even with high costs and a pre-revenue status, the company now holds one of the strongest balance sheets in the eVTOL space.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s steep decline after earnings, the Street’s analysts remain optimistic about the company’s prospects. Based on seven recent ratings, Archer Aviation boasts a “Strong Buy” consensus with an average ACHR stock price target of $12.29. This implies a 37.47% upside from the current price.
