‘Scoop Up,’ Says Austin Moeller About Archer Stock

Archer Aviation (NYSE:ACHR) is getting closer to the commercialization stage, and the progress being made on that front drew investor applause following the eVTOL maker’s Q2 results last week.

Keeping the positive narrative going, Canaccord analyst Austin Moeller also had plenty of nice things to say about the company following a recent chat with ACHR’s Chief Commercial Officer Nikhil Goel at Canaccord’s 45th Annual Growth Conference.

For one, Moeller now believes Archer could begin generating revenues from its “Launch Edition” program as early as the second half of this year. This initiative fits into Archer’s OEM strategy of partnering with global airlines, which has already produced a $6 billion backlog of orders from the likes of United Airlines, IndiGo, and Southwest. The Launch Edition enables early deployment before FAA certification, helping airlines and governments prepare for urban air mobility (UAM) operations while giving Archer an earlier revenue stream.

“Archer’s multi-year agreement with the Abu Dhabi Investment Fund and Abu Dhabi Aviation represents a transformational partnership,” says Moeller, “leveraging the deployment of ‘Launch Edition’ aircraft to help the UAE prepare ahead of time for its goal of being the first global operator of eVTOLs.”

The commercial story, however, is only one side of the coin. Goel also emphasized Archer’s growing role in defense, particularly through its collaboration with Anduril to develop a hybrid VTOL drone. Rather than retrofitting its Midnight airframe, Archer decided to start from scratch alongside a top defense contractor to meet the unique requirements of the U.S. military and NATO allies. That effort is further accelerated by recent acquisitions, such as Mission Critical Composites for rapid prototyping and Overair’s talent, including expertise from Predator drone designer Abe Karem. Together, these pieces position Archer to expand beyond passenger transport into advanced defense applications.

Additionally, Archer sees two major near-term opportunities in the eVTOL Integration Pilot Program (eIPP) and upgrades to the U.S. Air Traffic Control (ATC) system. Announced in June under the Unleashing American Drone Dominance Executive Order, the eIPP aims to launch eVTOL aircraft in the U.S. as early as next year, with five projects to be chosen within 90 days. Goel also noted that ATC upgrades are essential to safely integrate these aircraft into crowded airspace. He highlighted Archer’s partnership with Palantir to apply AI/ML for autonomy features in ATC modernization.

“We believe that a contract win by Archer and Palantir on the Brand-New ATC System, which has already received a $12.5B initial appropriation by Congress in July, could represent a nearer-term revenue opportunity for ACHR than the Midnight passenger aircraft or the unnamed defense program with Anduril,” Moeller explained.

All told, Moeller assigns ACHR shares with a Buy rating and a $13 price target, implying a 32% upside from current levels. (To watch Moeller’s track record, click here)

And he’s not alone in his optimism – the broader Street consensus also tilts bullish, with 5 additional Buys and just 2 Holds, pointing to a Strong Buy view. The average price target stands at $12.06, implying ~23% upside over the next 12 months. (See ACHR stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

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.