In a report released on March 28, Austin Moeller from Canaccord Genuity maintained a Buy rating on Archer Aviation (ACHR – Research Report), with a price target of $13.50.
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Austin Moeller has given his Buy rating due to a combination of factors, including Archer Aviation’s strategic partnerships and revenue potential. The recent agreement with Ethiopian Airlines as part of Archer’s “Launch Edition” program highlights the company’s ability to secure significant contracts, valued at around $30 million, which are expected to generate incremental revenues. This program is designed to establish a framework for commercializing the Midnight aircraft in early adopter markets, providing Archer with a solid revenue stream.
Additionally, the collaboration with Ethiopian Airlines, Africa’s largest air carrier and a member of the Star Alliance, positions Archer to leverage existing relationships within the alliance to attract more customers. The partnership aims to explore various use cases for advanced air mobility in Ethiopia, particularly in the tourism sector, which is projected to recover and grow significantly. These strategic moves, combined with the potential for substantial revenues from the Launch Edition program, support the Buy rating, as they indicate promising growth prospects for Archer Aviation.
Moeller covers the Industrials sector, focusing on stocks such as Bridger Aerospace Group Holdings, Intuitive Machines, and Spire Global. According to TipRanks, Moeller has an average return of -5.8% and a 32.62% success rate on recommended stocks.