Archer Aviation (ACHR) is gaining momentum with fresh deals and collaboration in the UAE and Asia. As a result, the stock has attracted investor interest following a 33% drop since October. According to one investor who goes by the alias Petri Dish Reports, the recent dip into the mid-$7 range presents a more attractive entry point for long-term investors. He believes that regulatory progress in the UAE could become a key trigger for the next leg of growth.
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Archer is developing an electric vertical takeoff and landing aircraft called Midnight. The vehicle is designed to carry four passengers on short city flights. While the company is still waiting for certification in the U.S. and the UAE, it has already sent its first Midnight unit to Abu Dhabi for test flights and pilot training. This is part of its early-stage plan to launch a hybrid model that combines aircraft sales, ride services, and maintenance.
The expectation is that the UAE will be Archer’s first commercial market, and Petri Dish estimates that selling 50 aircraft in the region could generate $250 million in revenue. He expects additional income of $2.5 million to $12.5 million per year from air taxi rides, depending on pricing and flight volume.
Meanwhile, ACHR continued its resurgence on Monday with a 3.62% rise, closing at $7.44.
Business Model and Financial Snapshot
Archer’s business is still in the pre-revenue stage, but the company is taking steps to build a vertically integrated operation. Its strategy includes selling aircraft, running its own fleet, and supporting customers through repairs and training. Archer also has a presence in defense, with contracts that tap into its electric powertrain and software technology.
From a financial view, Archer reported a net loss of $129.9 million in the third quarter of 2025. Operating expenses reached $174.8 million. However, the company held $1.64 billion in cash and short-term investments at the end of the quarter, helped by a $650 million equity raise earlier this year.
What Comes Next
According to Petri Dish, the path to certification in the UAE is moving quickly than in the U.S. He believes the local government is eager to promote electric air mobility and sees Midnight as a way to show leadership in this field. While delays are still possible, progress in the region remains a key milestone to watch.
For now, this investor views the current valuation as more balanced than it was during the October highs. He sees less risk at this stage compared to other small aviation players and expects the UAE certification to provide a strong tailwind for the stock once it clears.
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 66.67% upside from the current price.
