Archer Aviation Stock Could Trade Above $10, Says Five-Star Investor
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Early Contracts and Anduril Partnership Boost Outlook
Stone Fox Capital, a five-star investor, recently issued a bullish stance on Archer Aviation. He first noted progress in aircraft production. The company now has six aircraft in build and three more in final assembly. At the same time, Archer has secured international launch programs in the United Arab Emirates, Ethiopia, and Indonesia. These contracts include not only the delivery of aircraft but also support services such as training and maintenance. Management has said the initial value of these programs ranges from $18 million to $30 million each. In total, Archer could generate $50 million to $100 million in early revenue even before its main U.S. launch.
The investor also pointed to Archer's new partnership with defense firm Anduril. Anduril is a private company valued at more than $30 billion after rapid growth in 2024. Archer's work with Anduril opens a market in defense where hybrid aircraft could be developed. This expansion comes alongside its commercial focus and gives the company another path to growth.
Certification Delays and Cash Burn Remain Risks
Nevertheless, Archer's progress has not been free of issues. The Midnight aircraft had to change its front propeller design, and some pilot tests focused only on standard takeoff and landing, without vertical lift. This raised questions about whether the aircraft was fully ready for air taxi use. Concerns over transparency also surfaced after a recent test flight used an older version of the aircraft.
Even with these hurdles, Archer maintains a large order book worth about $6 billion and plans to scale production to 650 aircraft each year at its Georgia site. With $1.7 billion in cash, the company has the means to fund operations, although it reported a cash use of about $127 million last quarter.
In closing, Stone Fox Capital highlights that Archer has a path toward a multi-billion-dollar revenue base. He views the stock as attractive for investors who can accept the risks tied to certification delays and uncertain demand.
Is Archer Aviation Stock a Good Buy?
an average 12-month price target of $12.06. This implies a 22.81% upside from the current price.
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Business Insider
16 hours ago
- Business Insider
Archer Aviation Stock Could Trade Above $10, Says Five-Star Investor
According to one five-star investor, Archer Aviation (ACHR), the eVTOL aircraft company, is trading at a discount to its true potential. While the stock has stayed close to $10 for most of the year, this investor points out that Archer is beginning to unlock opportunities in both commercial air taxi services and defense work. As a result, he believes the company's current market value of about $6 billion could expand in the years ahead. 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. Early Contracts and Anduril Partnership Boost Outlook Stone Fox Capital, a five-star investor, recently issued a bullish stance on Archer Aviation. He first noted progress in aircraft production. The company now has six aircraft in build and three more in final assembly. At the same time, Archer has secured international launch programs in the United Arab Emirates, Ethiopia, and Indonesia. These contracts include not only the delivery of aircraft but also support services such as training and maintenance. Management has said the initial value of these programs ranges from $18 million to $30 million each. In total, Archer could generate $50 million to $100 million in early revenue even before its main U.S. launch. The investor also pointed to Archer's new partnership with defense firm Anduril. Anduril is a private company valued at more than $30 billion after rapid growth in 2024. Archer's work with Anduril opens a market in defense where hybrid aircraft could be developed. This expansion comes alongside its commercial focus and gives the company another path to growth. Certification Delays and Cash Burn Remain Risks Nevertheless, Archer's progress has not been free of issues. The Midnight aircraft had to change its front propeller design, and some pilot tests focused only on standard takeoff and landing, without vertical lift. This raised questions about whether the aircraft was fully ready for air taxi use. Concerns over transparency also surfaced after a recent test flight used an older version of the aircraft. Even with these hurdles, Archer maintains a large order book worth about $6 billion and plans to scale production to 650 aircraft each year at its Georgia site. With $1.7 billion in cash, the company has the means to fund operations, although it reported a cash use of about $127 million last quarter. In closing, Stone Fox Capital highlights that Archer has a path toward a multi-billion-dollar revenue base. He views the stock as attractive for investors who can accept the risks tied to certification delays and uncertain demand. Is Archer Aviation Stock a Good Buy? an average 12-month price target of $12.06. This implies a 22.81% upside from the current price.
Yahoo
a day ago
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Is Archer Aviation the Smartest Investment You Can Make Today?
Key Points Archer Aviation hasn't generated any revenue yet. But it's sitting on a big backlog that nearly matches its market cap. It plans to significantly expand its business over the next few years. 10 stocks we like better than Archer Aviation › Archer Aviation (NYSE: ACHR), a developer of electric vertical take-off and landing (eVTOL) aircraft, has seen its stock soar more than 180% over the past 12 months. That rally was driven by the market's enthusiasm for the nascent eVTOL market, but the company hasn't actually generated any revenue yet and continues to rack up steep losses. Should you hop on that bandwagon and expect the stock to soar? Or is too much growth already baked into its market cap of $6.6 billion? What does Archer Aviation do? Archer's Midnight eVTOL aircraft can carry a single pilot and four passengers. It travels up to 100 miles on a single charge with a maximum speed of 150 miles per hour. Its drone-like design makes it easier to land in crowded urban areas than traditional helicopters. Many companies, including United Airlines (NASDAQ: UAL), Future Flight Global, Soracle -- a joint venture between Japan Airlines (OTC: JAPSY) and Sumitomo (OTC: SSUM.F) -- Ethiopian Airlines, and Abu Dhabi Aviation, plan to use the Midnight for their air taxi services. Archer also plans to launch its own air taxi service within the next two years, and it will be the official air taxi services provider for the 2028 Summer Olympics in Los Angeles. One of Archer's biggest investors is the automaker Stellantis (NYSE: STLA), which hired it as the contract manufacturer for its own eVTOL aircraft. Archer also holds a contract with the U.S. Air Force. It delivered its first aircraft to the Air Force for testing purposes last year, and it expects to deliver five more under that contract over the next few years. When will Archer start to generate revenue? Before Archer went public by merging with a special purpose acquisition company (SPAC) in 2021, it claimed it would deliver its first 10 eVTOLs and generate $42 million in revenue in 2024. But it didn't generate any revenue last year as it racked up a net loss of $652 million. That big miss was disappointing, but Archer expects to ramp up its production to 10 aircraft in 2025, 48 aircraft in 2026, 252 in 2027, and 650 in 2028. With a backlog of about $6 billion, there's plenty of pent-up demand. Archer's manufacturing partnership with Stellantis, its new AI partnership with Palantir to optimize its manufacturing and aviation systems, and fresh rounds of funding could help it achieve those ambitious goals. But it has also more than doubled its number of outstanding shares since its public debut, and that dilution will likely continue as it subsidizes its salaries with big stock bonuses and issues more shares to fund its acquisitions. How much bigger could Archer grow? For 2025, analysts expect Archer to generate just $1.4 million in revenue as it delivers its first Midnight aircraft in Abu Dhabi. Assuming it ramps up its production and the Federal Aviation Administration (FAA) finally approves its first commercial flights in the U.S. this year, analysts expect its revenue to surge to $103.4 million in 2026 and $450.8 million in 2027. From 2024 to 2030, MarketsandMarkets estimates the eVTOL industry will have a compound annual growth rate (CAGR) of 35.3%. From 2031 to 2035, it expects a CAGR of 27.6%. If Archer can scale up its business, match analysts' revenue expectations, and continue to grow its top line at a CAGR of 30% from 2027 to 2035, its annual revenue could hit $3.7 billion by that final year. It could also finally turn profitable as economies of scale kick in. If the company achieves that explosive growth and trades at a reasonable 10 times sales by 2035, its market cap could rise nearly sixfold to $37 billion. It could grow even faster if it acquires its closest competitor, Joby Aviation, and its other smaller industry peers. Is Archer the smartest investment you can make today? Archer is still a speculative stock, but it could have a bright future. That might be why its insiders bought nearly seven times as many shares as they sold over the past 12 months. It's still risky, and I probably wouldn't call it the smartest investment you can make today, but it could be a good long-term play for daring growth investors. Should you invest $1,000 in Archer Aviation right now? Before you buy stock in Archer Aviation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Archer Aviation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy. Is Archer Aviation the Smartest Investment You Can Make Today? was originally published by The Motley Fool Sign in to access your portfolio
Business Wire
a day ago
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Archer Completes 55 Mile Flight—Longest Yet For Piloted Midnight Aircraft
SALINAS, Calif.--(BUSINESS WIRE)--Archer Aviation (NYSE: ACHR) today announced that its Midnight aircraft successfully completed its longest piloted flight to date, flying approximately 55 miles in 31 minutes at speeds exceeding 126 mph. The flight took place at Archer's flight test facility in Salinas, California, in front of United Airlines' Chief Financial Officer, Mike Leskinen, who led United Airlines' early investment in Archer. Test flights in the preceding week reached speeds of nearly 150 mph over a variety of patterns. This latest achievement marks another major milestone in Archer's envelope expansion program as the company advances toward FAA certification in the U.S. and near-term commercialization in the UAE. The flight was conducted as a conventional takeoff and landing mission. Four of Archer's test pilots are now regularly conducting test flights in Midnight, underscoring the program's continued progress and maturity. Adam Goldstein, Archer's Founder and CEO, said, 'I was proud to be on the tarmac with the team for this flight. Crossing the 50-mile mark at speed is another clear step toward commercialization that shows the maturity of our program.' Mike Leskinen, Executive Vice President and CFO of United, said: 'I've been a longtime supporter of bringing sustainable forms of aviation to market. Congratulations to the Archer team on achieving this milestone flight—I was impressed by how quiet the aircraft was.' The Experimental Test Pilot for this flight shared: 'Throughout the thirty-minute flight, the aircraft performed consistently, with predictable handling. It was a beautiful day to be behind the controls.' Midnight flight test pilots will continue to expand speed and duration, and test mission profiles that map to early commercial operations. This milestone follows a series of key developments in Archer's commercialization roadmap, including the continuation of its manufacturing ramp throughout the U.S. and the activation of its Launch Edition program in the UAE. About Archer Archer is designing and developing the key enabling technologies and aircraft necessary to power the future of aviation. To learn more, visit Forward-Looking Statements This press release contains forward looking statements regarding Archer's future business plans and goals, including statements regarding Archer's aircraft performance, and Archer's plans to develop, certify, manufacture and commercialize its aircraft. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors. The risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in Archer's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, available at In addition, please note that any forward-looking statements contained herein are based on assumptions that Archer believes to be reasonable as of the date of this press release. Archer undertakes no obligation to update these statements as a result of new information or future events. Source: Archer Aviation Text: ArcherIR
