Archer Aviation (ACHR) Stock Forecast & Price Target

Archer Aviation Inc. has successfully raised over $700 million in recent months, significantly boosting its cash balance and ensuring operational funding for the next two years despite a burn of $125 million in the last quarter. The company's Launch Edition strategy is anticipated to generate immediate revenues through initial deliveries to Abu Dhabi Aviation, which is expected to feature higher average selling prices and margins compared to previous forecasts. Additionally, Archer's extensive $6 billion order book, combined with strategic partnerships and advancements in regulations, positions the company well for long-term growth in the sustainable air mobility market.

Archer Aviation Inc. faces significant regulatory challenges that hinder its aircraft sales, contributing to cancellations within its pipeline and creating uncertainty regarding the timing of FAA certification for its eVTOL aircraft. The company's financials reflect increasing operational losses, with an adjusted EBITDA loss of $94.8 million in Q4 2024, up from $85.2 million in the same quarter the previous year, indicating worsening financial performance. Although the company's balance sheet may currently support operations through FY26 at existing burn rates, the persistent regulatory overhang and the ambiguous future of eVTOL approval present considerable risks that could impact its long-term viability.