It’s been a bumpy ride for Archer Aviation (NYSE:ACHR) over the past few months, with no shortage of turbulence in its jetstream. The company’s share price has lost significant altitude, descending by more than 50% since the beginning of October.
Claim 30% Off TipRanks
Trade ACHR with leverageThe mostly pre-revenue company aims to own and operate air taxis in multiple markets throughout the world. The idea of flying cars has captured plenty of imaginations, though it also requires investors to take a leap of faith that Archer will successfully navigate the various regulatory, production, and commercial challenges to make this vision come to life.
There are some tangible signs that bulls can latch onto, however. Last month, for instance, Archer announced that it would be working with state agencies in Texas, Florida, and New York to prepare for flights under the White House eVTOL Integration Pilot Program. Operations could begin as soon as the second half of 2026, according to the company.
One of the big concerns facing investors is the fate of the company’s Federal Aviation Administration (FAA) certification. A large chunk of the company’s future prospects hinge on achieving this benchmark.
While not discounting that issue, one top investor known by the pseudonym Stone Fox Capital is encouraged by recent developments.
“As operations get off the ground in New York, Florida, or the UAE, the FAA certification becomes less of a worry,” explains the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.
Stone Fox points out that Archer has plenty of potential sales in the pipeline, citing its indicative order book of $6 billion. Moreover, the investor notes that CEO Adam Goldstein stated in the last earnings call that the company is partnering with seven of the world’s largest airlines.
The investor acknowledges that questions remain, expecting the company’s upcoming earnings call to likely focus on future revenues and manufacturing ramps related to operations in the UAE and the White House program.
For now, though, the dip has created a compelling entry point, according to Stone Fox.
“The company has too many opportunities lining up in air taxis around the globe and work in the defense sector to not find the stock appealing here,” concludes Stone Fox, rating ACHR a Strong Buy. (To watch Stone Fox Capital’s track record, click here)
Wall Street is also focusing on the opportunities ahead. With 5 Buys and 1 Hold, ACHR earns a Strong Buy consensus rating. Its 12-month average price target of $13.20 points to gains approaching 120%. (See ACHR stock forecast)
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.