Archer Aviation (ACHR) arrived at the headlines on September 22, when its midnight evtol demonstrator reached a new registration of great altitude. During a trial flight from Salinas, California, the plane rose to 7,000 feet, its highest altitude to date, and flew approximately 45 miles to more than 120 mph. This milestone underlines the strong performance of Midnight (despite the typical urban air taxi operations point to 1,500–4,000 feet). The CEO Adam Goldstein praised the achievement as proof of “Archer’s performance capabilities while maintaining the highest security standards.”
The news sent Achr the actions sharply at the end of September. But is this technical advance enough to make ACHR actions a purchase? We are going to immerse ourselves and discover it.
Valued at around $ 6 billion per market capitalization, Archer Aviation is an urban air mobility company that specializes in electric vertical take -off aircraft (Evtol). Its mission is to revolutionize transport offering sustainable, safe and affordable air taxi services. The company is actively working on obtaining the certification of its Evtol plane to facilitate air taxi operations in the main global cities, with initial commercial operations planned for Abu Dhabi in the EAU.
The Archer stock has been volatile this year. After a strong demonstration in early 2025, fed by milestones such as signing as an official supplier of air taxis for the 2028 Olympic Games and advancing in their EAU program, the actions reached a maximum of 52 weeks about $ 13.92 in spring. At the end of September, ACHR quoted around $ 9, less than 30% from its maximum, reflecting some broader market pressure and pressure on the market. However, to date (YTD), the action has dropped almost 4%.
The ACHR assessment is remarkably high, with EV/sales in 3,066 compared to the median of the 2 sector, which reflects a very expensive stock. Similarly, its price/sales rise significantly in 4,225, which suggests a expensive investment compared to its peers.
www.barachar.com
Archer Aviation promoted his midnight evtol program with several achievements. Recently, the midnight prototype rose to 7,000 feet, marking the highest altitude in the flight for the design and expanding its proven flight envelope for congested urban airspace.
The production is also climbing, and Archer is now building six midnight planes at the same time, with three in the final assembly in its facilities in Silicon Valley and Georgia, accelerating the company towards commercial preparation. The firm secured high profile and government support associations; Archer became the official taxi air supplier for the 28 Olympic Games and benefited from an American executive order in June 2025 that creates an Evol pilot program that facilitates the implementations of the city.
Internationally, Archer delivered his first midnight to the EAU and began the ABU Dhabi flight tests, with the expected initial commercial payments as the milestones are fulfilled. Finally, Archer expanded to the defense when acquiring the Tilt-Rotor technology of Overair and the manufacturing assets composed to strengthen his defense program pipe.
Archer remains a development stage without income from products yet. In the second quarter of 2025, the company reported a Net GAAP loss of $ 206.0 million ($ 0.36 per share), expanding both from both the previous quarter and $ 106.9 million a year earlier when Archer invests money in R&D and production. Total operating expenses (R&D plus G&A) cost around $ 176.1 million, and adjusted Ebitda lost $ 118.7 million.
At the same time, Archer strengthened his balance with cash and equivalents that increased to $ 1,724 billion (compared to $ 834.5 million at the end of 2024) after recent financing, which gave the company a leading track in the sector and only a modest debt.
By sharing, net cash exceeds approximately $ 3/action, which implies business value is well below the market limit of ~ $ 6 billion. Management expects Ebitda losses adjusted by the third quarter of approximately $ 110-130 million.
No income was recognized in the second quarter, but Archer says that he could begin to reserve payments of milestones from the launch edition of Abu Dhabi and the first US demonstration agreements. UU. At the end of this year. In general, losses are still large, but the cash buffer buys time for certification and early sales.
Wall Street is still cautiously optimistic with Archer. Barchart shows a “moderate purchase” consensus: five of the 10 analysts qualify Archer a “strong purchase”, two qualify it as a “moderate purchase” and three as a “retention”, with an average target price of 12 months about $ 12.40, which implies approximately 33% of the current levels. Individual objectives cover around $ 10 to $ 18, reflecting broad opinions about time and execution.
JP Morgan remains “neutral” with an objective of $ 10, praising progress in FAA certification but marking the risk of regulatory time and the challenge of climbing the approval.
Needham maintains a “purchase” with a $ 13 call, citing the Eau flight tests and milestone payments that could produce the first income for the end of the year or early 2026.
In addition, HC Wainwright (Amit Dayal) remains optimistic with a $ 18 objective, pointing out zero income and extensive losses, but believing that management reaches to milestones for the marketing of 2026.
Analysts agree that Archer shows a solid technical and association execution, however, they emphasize that the company must climb the production and certification deadlines to justify higher assessments. The differential in the target price captures that compensation: great rise if the milestones arrive on time, substantial risk if they slide.
www.barachar.com
On the publication date, Nauman Khan had no positions (directly or indirectly) in any of the values ​​mentioned in this article. All information and data in this article are only for informative purposes. This article was originally published at Barchart.com
