Archer Aviation (ACHR) is scheduled to report for Q2 2025 tomorrow, on August 11. The hype is gradually growing, and expectations are rising. But how does our AI Analyst see Archer’s prospects ahead of the company’s earnings call?
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Let’s explore what it has to say:
TipRanks’ AI Analyst Take on Archer
The bottom line is that TipRanks’ AI Analyst keeps its rating at Neutral, with a score of 49, reflecting real progress alongside the financial strain of a company still in its pre-revenue phase. Archer has yet to book sales. Like other eVTOL developers before launch, it runs on financing. In Q1, it logged $144 million in GAAP operating expenses and an adjusted EBITDA loss of $109 million, showing the steep cost of scaling and certification prep.
However, the cash position tells a different story. Archer ended Q1 with $1.03 billion on hand, plus $400 million from Stellantis (STLA) and $300 million from an equity raise earlier this year. That liquidity puts it among the best-funded early-stage aerospace names, giving it breathing room to hit key milestones. And milestones are coming thick and fast. Test flights in Abu Dhabi drew UAE regulators and investors, with the Midnight aircraft holding up under extreme heat. Piloted testing is next, though minor delays have been linked to new flight instrumentation.
Partnerships add another layer. Archer is working with Anduril on defense aviation and with Palantir (PLTR) on AI-driven aviation software, giving it a path to markets beyond passenger air service.
What’s the Plan, Stan?
Still, the AI Analyst notes risks. Equity dilutes shareholders. Certification, execution, and supply chain issues could push timelines. Competition in the eVTOL space is also heating up, as Joby Aviation (JOBY) is moving rapidly toward commercial flight.
The plan now is to scale to two aircraft a month by late 2025, launch in the UAE by year-end, and begin U.S. service in early 2026. For now, the Neutral rating says the opportunity is real but matched by the challenges. Investors will be watching tomorrow’s earnings call for signs that Archer can keep momentum without losing altitude.
Is Archer Aviation Stock a Good Buy?
Despite the stock’s speculative nature, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average 12-month price target of $11.92. This implies a 22.63% upside from the current price.
