Archer Aviation (NYSE:ACHR) shares may be feeling the impact of the stock market’s ongoing tariff-driven volatility – down roughly 25% year-to-date – but the company’s long-term promise remains as enticing as ever.
At least, that’s the take from Needham analyst Chris Pierce, who sees compelling momentum behind the eVTOL innovator, especially after two recent events that highlighted the progress the company has been making.
One of those moments came at the company’s “Meet Midnight” event in Manhattan, where it unveiled its Midnight aircraft. According to Pierce, the event “checked the necessary boxes,” sparking plenty of enthusiasm among potential passengers based on the potential for a new and improved way to reach metro NYC airports.
And this wasn’t just a PR stunt. Heavy hitters like United Airlines and the New York City Economic Development Corporation, which oversees key heliports including East 34th Street and Downtown Manhattan, were in attendance, adding further credibility to the “potential transformation” of airport transportation.
“We left the event more bullish on eVTOL vertiport potential at larger airports after speaking with representatives from United’s Newark team,” Pierce commented on the matter.
The other recent event Archer was involved in was the eVTOL Insights’ North America Conference, with Archer and peers Joby Aviation and Beta Technologies all taking part. Pierce views commercial eVTOL aircraft certification in the US as a three-horse race, with the three companies “emerging as winners.”
What stood out to Pierce the most at the conference was how “little share of the event” the major eVTOL players actually had, despite being “clearly felt in the room.” Company reps and panelists largely acknowledged the dominance of these key players in the metropolitan eVTOL market and instead directed their focus toward electrification as a means to boost regional airport usage.
“We’re bullish on electrification driving increased regional airport usage, replacing a wide swath of inefficient and environmentally damaging 2-6 hour road trips done in ICE vehicles,” says the analyst on this issue.
Beta Technologies, for example, has already installed charging infrastructure at more than 20 regional airports east of the Mississippi and recently wrapped a six-week piloted flight tour across 22 U.S. states. Meanwhile, companies like Surf Mobility are tapping into real-world travel patterns to figure out where people actually want to go, not just where planes happen to land.
All told, Pierce is staying firmly in the bull camp with a Buy rating on ACHR shares and a $13 price target, implying a nearly 80% upside from current levels. (To watch Pierce’s track record, click here)
The broader Street isn’t far behind. The average price target stands at $12.83, pointing to a potential 75% gain over the next year. With 6 Buys and just 1 Hold on record, the stock earns a Strong Buy consensus rating. (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.