Tuesday, H.C. Wainwright initiated coverage on Archer Aviation Inc. (NYSE: NYSE:ACHR) with a Buy rating and a price target of $12.50.
The firm highlighted Archer's focus on commercializing electric vertical takeoff and landing (eVTOL) aircraft sales and air taxi ride-sharing services.
Archer Aviation, headquartered in San Jose, California, is actively working towards obtaining Federal Aviation Administration (FAA) certification for its Midnight eVTOL aircraft.
"Archer is progressing towards FAA certification with six of its Midnight aircraft, the first three of which are moving towards final assembly and scheduled for piloted flight tests in late 2024," analysts at H.C. Wainwright said.
The company's recent achievements include obtaining Part 145 repair station and Part 135 air carrier certificates, which are critical steps towards the commencement of commercial operations. Archer's collaboration with the FAA is ongoing as they work on compliance and type certification, with the goal of launching their aircraft in the U.S. market in 2025.
Archer's expansion plans are not limited to the U.S. The company intends to extend its operations to international markets, with plans to enter India and the United Arab Emirates by 2026, or potentially earlier. Furthermore, Archer has established a partnership with a Korean company to bring eVTOL operations to South Korea by 2026.
In other recent news, Archer Aviation Inc. has made significant strides in the development of its Midnight electric vertical take-off and landing (eVTOL) aircraft. The company reported the successful completion of its flagship Midnight aircraft's first transition flight and its delivery to the US Air Force. Additionally, Archer Aviation secured a potential $580 million deal with Future Flight Global for the sale of up to 116 Midnight eVTOL aircraft.
The company also announced a $230 million equity capital raise and a manufacturing agreement with Stellantis (NYSE:STLA), which includes nearly $400 million in funding. Canaccord Genuity adjusted its stock price target for Archer Aviation to $7.50, down from $9.00, while retaining a Buy rating. Archer ended Q2 with $360.4 million in cash and equivalents and anticipates Q3 2023 operating expenses to be between $80 million and $95 million.
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