Archer Aviation (ACHR) Stock Forecast & Price Target

Archer Aviation Inc has successfully raised over $700 million in recent months, increasing its cash reserves by more than $300 million quarter-over-quarter, which provides a solid financial foundation to sustain operations for approximately two years at current burn rates. The company's Launch Edition strategy is expected to drive near-term OEM revenues with deliveries slated for this year, resulting in higher average selling prices (ASPs) and improved margins compared to previous expectations, while a robust ~$6 billion order book positions Archer to capitalize on its commercialization efforts. Additionally, significant market opportunities, including partnerships with the Department of Defense and a collaboration with Stellantis, bolster Archer’s long-term growth potential in the sustainable air mobility sector.

Archer Aviation Inc faces significant regulatory barriers that are delaying Original Equipment Manufacturer (OEM) sales and leading to cancellations in its aircraft pipeline, contributing to uncertainty regarding the timing of FAA certification for its eVTOL aircraft. The company reported an adjusted EBITDA loss of $94.8 million in the fourth quarter of 2024, worsening from a $85.2 million loss in the same quarter the previous year, indicating ongoing financial distress. While there are some optimistic industry developments, the persistent regulatory overhang and uncertain timelines for certification create a challenging environment for Archer's financial prospects.