Latest news with #ACHR
Yahoo
18 hours ago
- Business
- Yahoo
Archer or EHang: Which eVTOL Innovator is Ready to Lead the Skies?
As the push for cleaner, faster and smarter transportation gains momentum, the electric vertical takeoff and landing (eVTOL) industry is rapidly emerging as a key player in urban mobility. Among the notable names in this space are Archer Aviation Inc. (ACHR) and EHang Holdings Limited (EH), two innovative companies aiming to revolutionize short-distance travel by enabling people to move faster and avoid ground-level congestion. U.S.-based Archer Aviation is currently advancing toward Federal Aviation Administration certification for its flagship Midnight aircraft. The company plans to roll out commercial air taxi services by the end of 2025. Meanwhile, China-based EHang is taking a different route. The company is developing fully autonomous, pilotless eVTOL aircraft. EHang has already received the world's first type certification for an autonomous eVTOL from China's aviation authority, giving it a strong first-mover advantage in the autonomous flight market. With the global eVTOL market expected to grow rapidly in the coming years, investor interest in next-generation air mobility is on the rise. Archer and EHang have taken different approaches in terms of strategy, location and progress toward certification. This raises an important question for investors: Which eVTOL stock is better placed to take the lead? Let's explore further to find out. Key Takeaways for ACHR Recent Achievements: Archer Aviation has made solid progress in the eVTOL space through notable milestones, strategic collaborations and key agreements. In July 2025, the company began test flights of its Midnight aircraft in Abu Dhabi, marking a significant step toward launching commercial air taxi services in the UAE. In June, ACHR and Jetex joined hands to integrate Jetex's network of more than 40 private terminals across more than 30 countries into the former's planned air taxi operations. This will help Archer Aviation gain access to key infrastructure in global cities. In the same month, ACHR joined a five-country alliance announced by the U.S. Transportation Secretary and acting FAA Administrator. The initiative includes Japan, the United Kingdom, Canada, Australia and the United States, and aims to align certification processes for eVTOL aircraft across these markets. This development is expected to speed up Midnight's regulatory approvals and open up opportunities for international expansion. Financial Stability: Archer Aviation ended the first quarter of 2025 with $1.04 billion in cash and cash equivalents. The company had no current debt and reported long-term debt of $0.74 billion. This strong financial position gives Archer the flexibility to support its civil and defense business plans while continuing to invest in innovation and advanced technologies. Challenges to Note: While Archer Aviation holds strong short-term potential, its long-term success remains uncertain. The eVTOL industry is still in its early stages and Archer's ability to design, certify and scale production will largely depend on how the industry matures and how the demand for such aircraft develops over time. Factors like safety, noise and affordability could impact public acceptance and slow down widespread adoption. Another challenge is that Archer has yet to generate any revenues. Until the company begins commercial operations and establishes a reliable customer base, its ability to deliver sustainable long-term value remains uncertain. Key Takeaways for EH Recent Achievements: EHang has made strong progress in scaling its autonomous eVTOL operations and expanding its presence in China's low-altitude aviation sector. In July 2025, the company partnered with Tsinghua University to launch a joint institute focused on low-altitude aviation technology to strengthen research and development for urban air mobility solutions. In the same month, EHang signed a strategic agreement with Reignwood Aviation Group to promote integration between traditional general aviation and next-generation eVTOL aircraft. In June, EHang secured a purchase order for 50 units of its EH216-S eVTOL aircraft from Guizhou Scenic Tourism Development Co. Financial Stability: EHang ended the first quarter of 2025 with $154 million in cash and cash equivalents. It reported a long-term debt of nine million and a current debt of $15 million. This indicates a strong financial position, which could support the company to reliably fund its ongoing operations and future growth plans. Challenges to Note: While EHang has made significant strides in autonomous eVTOL development, several challenges remain. The company's aircraft are designed for fully autonomous operations, which adds complexity to regulatory approval and may slow international expansion. Adoption in global markets could be delayed as many countries are yet to establish clear rules for pilotless passenger flights. Another concern is that EHang's commercial operations are still limited in scale. Until the company demonstrates consistent revenue generation and expands beyond trial programs and regional deployments, its long-term growth potential remains uncertain. How do EPS Estimates Compare for ACHR & EH? The Zacks Consensus Estimate for Archer Aviation's 2025 loss per share implies a year-over-year improvement, while the same for 2026 suggests a deterioration. The stock's near-term bottom-line estimates have made no movement over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for EHang Holdings' 2025 earnings per share implies a year-over-year deterioration, while the same for 2026 suggests an improvement. The stock's 2025 and 2026 bottom-line estimates have made no movement over the past 60 days. Image Source: Zacks Investment Research Stock Price Performance: ACHR vs EH ACHR has outperformed EH over the past year. Shares of ACHR gained 151.3% compared with shares of EH, which gained 56.4%. Image Source: Zacks Investment Research ACHR's Valuation More Attractive Than EH EH shares are expensive on a relative basis, with its trailing 12-month Price/Book (P/B TTM) being 11.30X compared with ACHR's P/B TTM of 6.09X. Image Source: Zacks Investment Research ACHR's Debt-to-Capital Ratio More Favorable Than EH ACHR has a total debt-to-capital ratio of 5.96%, which is significantly lower than EH's total debt-to-capital ratio of 15.57%. This indicates that ACHR maintains a more balanced capital structure and is less dependent on debt financing. Image Source: Zacks Investment Research ACHR's Prospects Brighter than EH For Now Both Archer Aviation and EHang are leading players in the growing eVTOL industry, with unique approaches to urban air mobility. However, Archer currently appears to have the edge over EH. ACHR offers a stronger financial position, lower debt-to-capital ratio and more attractive valuation, backed by its steady progress toward FAA certification and multiple strategic partnerships enhancing its global reach. On the other hand, although EHang leads in autonomous flight development and has made notable advances in China, regulatory complexities outside its home market raise concerns. Thus, for investors seeking exposure to the eVTOL space, ACHR's financial strength, international presence, outperformance at the bourses and less leverage make it a stronger player than EH, at present. Both ACHR and EH currently hold a Zacks Rank #3 (Hold). You can see the full list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EHang Holdings Limited Unsponsored ADR (EH) : Free Stock Analysis Report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
a day ago
- Automotive
- Business Insider
Why Archer Aviation's (ACHR) Legal Troubles Verify Warren Buffett's Philosophy
Archer Aviation Inc. (ACHR), a leading eVTOL aircraft manufacturer headquartered in California, saw its shares plunge 11% last week, followed by another 7% the next day, as investors feared the advancement of a shareholder lawsuit and the future of its partnership with Stellantis (STLA). 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. Famously attributed to Warren Buffett and often quoted by active traders, the saying goes: 'Be fearful when others are greedy, and greedy when others are fearful.' The adage seems to apply perfectly to what's happening with ACHR stock. I believe this irrational fear has created an opportunity for long-term investors after a thorough evaluation of Archer's manufacturing capabilities, regulatory environment, and the long-term demand environment for urban air mobility. I remain Bullish on Archer Aviation stock, despite the short-term legal uncertainty. Negative Headlines Are Mostly Noise My bullish outlook on Archer remains unchanged despite two recent negative headlines that briefly weighed on market sentiment. While a shareholder lawsuit in Delaware has been cleared to proceed to the next stage, I believe this legal development poses minimal risk to the company's core operations in the medium to long term. The lawsuit alleges that Archer misled investors with overly optimistic timelines and inaccurate claims about its technological advancements. However, over the past few years, Archer has consistently demonstrated the technological edge of its flagship eVTOL, Midnight—effectively countering much of the skepticism. I see this litigation as largely immaterial in the long run. Concerns about Stellantis potentially severing ties with Archer also appear overstated. Although Stellantis recently abandoned its hydrogen vehicle program following a disappointing earnings report, this move reflects a reallocation of resources toward its core automotive business—not a shift in its commitment to Archer. The partnership with Archer is a key part of Stellantis's broader strategy to diversify into the high-growth advanced air mobility market. Walking away now would undermine years of investment and strategic positioning. In short, I view both developments as short-term noise rather than indicators of any structural weakness in Archer's long-term trajectory. Commercialization is No Longer Decades Away My bullish outlook on Archer Aviation is grounded in the belief that the company is on a clear path toward securing full FAA certification, a critical milestone that would allow it to launch commercial operations. While Archer remains a pre-revenue company and continues to post significant cash outflows— $94.6 million in Q1 alone and an average of roughly $84 million per quarter over the last nine quarters—I believe the prospect of regulatory approval meaningfully reduces long-term business risk. According to recent filings, Archer has entered the fourth and final stage of the FAA's certification process, having successfully completed the first three. If progress continues as planned, the company expects to obtain full certification by the end of this year. Importantly, there are strong indications that U.S. regulators are supportive of both eVTOLs and the broader urban air mobility sector. The FAA's creation of a new aircraft category specifically for certifying Archer's Midnight model reflects a flexible, forward-thinking approach to regulation. Additionally, the agency's ongoing collaboration with eVTOL manufacturers to establish safety standards signals a clear commitment to enabling commercialization. These regulatory tailwinds reinforce my confidence in Archer's long-term potential, even in the face of short-term financial challenges. Archer is Well-Positioned to Tap Into a Multi-Billion-Dollar Opportunity My long-term optimism about Archer Aviation's profitability is rooted in the vast market opportunity the company is targeting. According to Mordor Intelligence, the eVTOL aircraft market is projected to reach $1.19 billion by the end of this year and grow at an impressive CAGR of around 30%, hitting $4.36 billion by 2030. Key growth drivers include a favorable regulatory landscape, advances in battery energy density, and the urgent need for alternative mobility solutions as global airports approach maximum capacity. The broader urban air mobility market further highlights the scale of Archer's potential. Currently valued at $5 billion, this market is expected to expand at a 19% CAGR, reaching $70 billion by 2040. These long-term projections underscore the significant runway ahead for Archer as a first mover in the space. I'm also encouraged by Archer's strong cash position, which totaled just over $1 billion at the end of Q1. Management has highlighted this as the largest cash reserve in the industry, providing the company with a meaningful buffer to navigate regulatory hurdles and sustain operations through the pre-commercialization phase. This financial strength positions Archer well to capitalize on market growth and execute its long-term vision. What is the Future of ACHR? On Wall Street, ACHR stock carries a Moderate Buy consensus rating based on four Buy, two Hold, and zero Sell ratings over the past three months. ACHR's average stock price target of $11.75 implies almost 5% upside potential over the next twelve months. While current analyst estimates suggest limited near-term upside, I believe those projections are likely to shift meaningfully once Archer secures full FAA certification. At this stage, many analysts remain conservative due to the company's pre-revenue status. However, considering Archer's steady progress through the FAA certification process, the strong long-term demand outlook for the urban air mobility sector, and Archer's clear leadership position within the industry, I view the company as a compelling investment in the future of global transportation. Short-Term Noise, Long-Term Opportunity Archer Aviation shares have come under pressure following two negative headlines last week. However, a closer look reveals that the perceived risks are unlikely to have a meaningful impact on the company's long-term outlook. With a strong first-mover advantage in the urban air mobility space, Archer is well-positioned to capitalize on this emerging market—and I remain confidently Bullish on the company's ability to turn that opportunity into tangible long-term profitability. With market participants currently fearing ACHR's immediate future, now may be the time to adopt a bullish stance with a long-term view.
Yahoo
2 days ago
- Business
- Yahoo
Archer or EHang: Which eVTOL Innovator is Ready to Lead the Skies?
As the push for cleaner, faster and smarter transportation gains momentum, the electric vertical takeoff and landing (eVTOL) industry is rapidly emerging as a key player in urban mobility. Among the notable names in this space are Archer Aviation Inc. (ACHR) and EHang Holdings Limited (EH), two innovative companies aiming to revolutionize short-distance travel by enabling people to move faster and avoid ground-level congestion. U.S.-based Archer Aviation is currently advancing toward Federal Aviation Administration certification for its flagship Midnight aircraft. The company plans to roll out commercial air taxi services by the end of 2025. Meanwhile, China-based EHang is taking a different route. The company is developing fully autonomous, pilotless eVTOL aircraft. EHang has already received the world's first type certification for an autonomous eVTOL from China's aviation authority, giving it a strong first-mover advantage in the autonomous flight market. With the global eVTOL market expected to grow rapidly in the coming years, investor interest in next-generation air mobility is on the rise. Archer and EHang have taken different approaches in terms of strategy, location and progress toward certification. This raises an important question for investors: Which eVTOL stock is better placed to take the lead? Let's explore further to find out. Key Takeaways for ACHR Recent Achievements: Archer Aviation has made solid progress in the eVTOL space through notable milestones, strategic collaborations and key agreements. In July 2025, the company began test flights of its Midnight aircraft in Abu Dhabi, marking a significant step toward launching commercial air taxi services in the UAE. In June, ACHR and Jetex joined hands to integrate Jetex's network of more than 40 private terminals across more than 30 countries into the former's planned air taxi operations. This will help Archer Aviation gain access to key infrastructure in global cities. In the same month, ACHR joined a five-country alliance announced by the U.S. Transportation Secretary and acting FAA Administrator. The initiative includes Japan, the United Kingdom, Canada, Australia and the United States, and aims to align certification processes for eVTOL aircraft across these markets. This development is expected to speed up Midnight's regulatory approvals and open up opportunities for international expansion. Financial Stability: Archer Aviation ended the first quarter of 2025 with $1.04 billion in cash and cash equivalents. The company had no current debt and reported long-term debt of $0.74 billion. This strong financial position gives Archer the flexibility to support its civil and defense business plans while continuing to invest in innovation and advanced technologies. Challenges to Note: While Archer Aviation holds strong short-term potential, its long-term success remains uncertain. The eVTOL industry is still in its early stages and Archer's ability to design, certify and scale production will largely depend on how the industry matures and how the demand for such aircraft develops over time. Factors like safety, noise and affordability could impact public acceptance and slow down widespread adoption. Another challenge is that Archer has yet to generate any revenues. Until the company begins commercial operations and establishes a reliable customer base, its ability to deliver sustainable long-term value remains uncertain. Key Takeaways for EH Recent Achievements: EHang has made strong progress in scaling its autonomous eVTOL operations and expanding its presence in China's low-altitude aviation sector. In July 2025, the company partnered with Tsinghua University to launch a joint institute focused on low-altitude aviation technology to strengthen research and development for urban air mobility solutions. In the same month, EHang signed a strategic agreement with Reignwood Aviation Group to promote integration between traditional general aviation and next-generation eVTOL aircraft. In June, EHang secured a purchase order for 50 units of its EH216-S eVTOL aircraft from Guizhou Scenic Tourism Development Co. Financial Stability: EHang ended the first quarter of 2025 with $154 million in cash and cash equivalents. It reported a long-term debt of nine million and a current debt of $15 million. This indicates a strong financial position, which could support the company to reliably fund its ongoing operations and future growth plans. Challenges to Note: While EHang has made significant strides in autonomous eVTOL development, several challenges remain. The company's aircraft are designed for fully autonomous operations, which adds complexity to regulatory approval and may slow international expansion. Adoption in global markets could be delayed as many countries are yet to establish clear rules for pilotless passenger flights. Another concern is that EHang's commercial operations are still limited in scale. Until the company demonstrates consistent revenue generation and expands beyond trial programs and regional deployments, its long-term growth potential remains uncertain. How do EPS Estimates Compare for ACHR & EH? The Zacks Consensus Estimate for Archer Aviation's 2025 loss per share implies a year-over-year improvement, while the same for 2026 suggests a deterioration. The stock's near-term bottom-line estimates have made no movement over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for EHang Holdings' 2025 earnings per share implies a year-over-year deterioration, while the same for 2026 suggests an improvement. The stock's 2025 and 2026 bottom-line estimates have made no movement over the past 60 days. Image Source: Zacks Investment Research Stock Price Performance: ACHR vs EH ACHR has outperformed EH over the past year. Shares of ACHR gained 151.3% compared with shares of EH, which gained 56.4%. Image Source: Zacks Investment Research ACHR's Valuation More Attractive Than EH EH shares are expensive on a relative basis, with its trailing 12-month Price/Book (P/B TTM) being 11.30X compared with ACHR's P/B TTM of 6.09X. Image Source: Zacks Investment Research ACHR's Debt-to-Capital Ratio More Favorable Than EH ACHR has a total debt-to-capital ratio of 5.96%, which is significantly lower than EH's total debt-to-capital ratio of 15.57%. This indicates that ACHR maintains a more balanced capital structure and is less dependent on debt financing. Image Source: Zacks Investment Research ACHR's Prospects Brighter than EH For Now Both Archer Aviation and EHang are leading players in the growing eVTOL industry, with unique approaches to urban air mobility. However, Archer currently appears to have the edge over EH. ACHR offers a stronger financial position, lower debt-to-capital ratio and more attractive valuation, backed by its steady progress toward FAA certification and multiple strategic partnerships enhancing its global reach. On the other hand, although EHang leads in autonomous flight development and has made notable advances in China, regulatory complexities outside its home market raise concerns. Thus, for investors seeking exposure to the eVTOL space, ACHR's financial strength, international presence, outperformance at the bourses and less leverage make it a stronger player than EH, at present. Both ACHR and EH currently hold a Zacks Rank #3 (Hold). You can see the full list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EHang Holdings Limited Unsponsored ADR (EH) : Free Stock Analysis Report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Archer Aviation Inc. (ACHR) Outpaces Stock Market Gains: What You Should Know
Archer Aviation Inc. (ACHR) closed at $11.21 in the latest trading session, marking a +2% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.24%. Shares of the company have appreciated by 3.78% over the course of the past month, underperforming the Aerospace sector's gain of 5.88%, and the S&P 500's gain of 4.61%. Investors will be eagerly watching for the performance of Archer Aviation Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.2, indicating a 16.67% growth compared to the equivalent quarter last year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.76 per share and a revenue of $11.29 million, indicating changes of +32.74% and 0%, respectively, from the former year. Investors might also notice recent changes to analyst estimates for Archer Aviation Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Archer Aviation Inc. is currently a Zacks Rank #3 (Hold). The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Aviation Inc. (ACHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Insider
23-07-2025
- Business
- Business Insider
Archer Aviation (ACHR) Stock Sinks 10% as Investors Wait for Commercial Takeoff
Archer Aviation (ACHR) is steadily laying the groundwork for next-gen city transit, striking deals and forming partnerships around the world with what appears to be a focused strategy. Still, the future can't arrive fast enough. Until commercialization becomes real, the stock remains a speculative play. Yesterday's trading session proved just that, as shares of ACHR fell $1.44 to $11.85, down 10.84%, with an added premarket drop to $11.45. The sell-off occurred amid heavy options activity, with 204,000 contracts changing hands. 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. Call volume continued to outpace puts, with a put/call ratio of 0.47. That is higher than the typical 0.25, signaling more hedging despite bullish speculation. Implied volatility dropped sharply, falling 12.62 points to 86.96, but remains elevated versus historical norms. Options are pricing daily swings of $0.65, and skew data shows rising demand for downside protection. Manufacturing Moves, Market Waits Just a few days ago, CEO Adam Goldstein highlighted the company's acquisition of an advanced composite manufacturing facility in Long Beach, which occurred in May. 'We continue to believe that investing in key advanced manufacturing capabilities here in the U.S. is the right approach,' he wrote. The deal aims to reduce costs on the Midnight aircraft and speed up development of new variants, including for defense. The move reflects Archer Aviation's focus on deeper U.S. manufacturing as it scales. For now, Archer Aviation is moving fast on vision, but the market is waiting on execution. Until timelines firm up and revenue starts to take shape, volatility may remain part of the journey. Is Archer Aviation Stock a Good Buy? Despite the stock's decline, Wall Street analysts remain optimistic about the company. Based on six recent ratings, Archer Aviation boasts a 'Moderate Buy' consensus with an average 12-month price target of $11.75. This implies a 0.84% downside from the current price.
