Latest news with #AustinMoeller
Business Insider
10 hours ago
- Business
- Business Insider
‘Padding the Coffers Ahead of Lift Off,' Says Canaccord About Archer Aviation Stock
Archer Aviation (NYSE:ACHR) may have ruffled some feathers with news of dilution, but raising capital is often a necessary step – especially, pardon the pun, for companies looking to get projects off the ground. Confident Investing Starts Here: As it prepares to participate in the White House's newly announced eVTOL Integration Pilot Program (eIPP), Archer last week announced an $850 million private placement. It raised $817.1 million in net proceeds by selling 85 million shares of Class A common stock to institutional investors at $10 per share. The offering should lift Archer's cash reserves to around $1.8 billion – among the highest in the industry – based on its 1Q25 ending balance. The new funds are expected to support accelerated manufacturing and certification efforts tied to the eIPP. Canaccord analyst Austin Moeller thinks Archer's 'timely capital infusion' underscores the significance of Trump's executive order aimed at fast-tracking eVTOL deployment in the U.S. The eIPP, a key provision within the Unleashing American Drone Dominance EO, establishes a training program to showcase five U.S.-based eVTOL or UAM (urban air mobility) projects on an 'accelerated timeline' ahead of the 2028 LA Olympics. The Department of Transportation has 180 days to select the five aircraft designs. While dilutive and likely to raise questions about cash use, Moeller points out that the capital raise 'financially positions Archer Aviation to be a leader in US eVTOL aircraft deployment at key US airports (Newark, Chicago O'Hare) via the eIPP, in addition to providing a substantial capital backstop as manufacturing operations ramp in Covington, GA, for both commercial eVTOL passenger aircraft and hybrid-VTOL tactical drones.' With an estimated FY25 cash burn of around $466 million, Archer now has a 'significant runway' to scale up manufacturing over the next few years, which should also pave the way for revenue or cash deposits from its international 'Midnight Launch Edition' program. Meanwhile, on Monday Archer announced that it has partnered with PT. Industri Ketahanan Nasional (IKN) to deploy an initial fleet of its Midnight aircraft in Indonesia, the third country tapped for its 'Launch Edition' program. Archer has previously announced Launch Edition deployments in the UAE through a partnership with Abu Dhabi Aviation, and in Ethiopia via Ethiopian Airlines. Against this backdrop, Moeller rates ACHR shares a Buy, although to account for the equity dilution, his price target goes from $13.5 to $13. Still, there's a potential upside of 25% from current levels. (To watch Moeller's track record, click here) 3 other analysts also take a bullish stance on ACHR and with an additional 2 Holds, the stock claims a Moderate Buy consensus rating. The average target clocks in at $11.75, implying shares will post growth of 13% in the months ahead. (See ACHR stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Business Insider
a day ago
- Business
- Business Insider
Archer Aviation Stock (ACHR) Slips 14%, Yet Analyst Expects 30%+ Upside on eVTOL Plans
Archer Aviation (ACHR) stock took a sharp hit on Friday, with shares sliding 14% after the company announced an $850 million stock offering priced at $10 per share. The deal is expected to bring in $817.1 million in net proceeds and is set to close on June 16, 2025. While the fresh capital will help fuel Archer's growth and aircraft certification efforts, the share dilution clearly weighed on investor sentiment. In response to the funding news, Canaccord Genuity analyst Austin Moeller reaffirmed his Buy rating on Archer but trimmed the price target slightly from $13.50 to $13.00. The new price target implies over 30% upside potential. Confident Investing Starts Here: The announcement comes on the heels of new executive orders from President Donald Trump to implement an eVTOL (electric vertical takeoff and landing) Integration Pilot Program (eIPP) in the United States. This initiative aims to speed up the rollout of eVTOL aircraft in the U.S. Analyst Backs Archer's eIPP Bid Moeller called the $850 million raise an important move to help Archer take part in the eIPP. This new U.S. government program will support five electric aircraft projects, with the goal of getting them ready to operate before the 2028 Olympic Games in Los Angeles. According to the analyst, Archer's quick action to raise funds shows its clear intent to take part in this eIPP initiative. He believes this extra capital will help the company speed up production and move through the aircraft certification process—both of which are crucial for meeting the program's tight timeline. With this funding round, Archer's total cash balance is expected to rise to around $1.8 billion, based on its first-quarter 2025 figures and past fundraises. Notably, Archer ended the quarter with $1.03 billion in cash and equivalents. Moeller added that this figure does not include $47.5 million available through its at-the-market (ATM) program or up to $400 million in future support from Stellantis, which is expected to help expand production of the Midnight aircraft in Georgia. Moeller believes Archer's strong financial base gives it a clear edge over its rivals. The Department of Transportation has 180 days to choose five aircraft designs for the eIPP, and Moeller sees Archer as a top contender. In his view, Archer stands out as one of the two leading eVTOL developers in the U.S. Is ACHR Stock a Buy, Sell, or Hold?
Business Insider
4 days ago
- Business
- Business Insider
Archer Aviation (ACHR) Gets a Buy from Canaccord Genuity
In a report released today, Austin Moeller from Canaccord Genuity maintained a Buy rating on Archer Aviation (ACHR – Research Report), with a price target of $13.00. The company's shares opened today at $10.08. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Moeller is a 4-star analyst with an average return of 9.5% and a 46.19% success rate. Moeller covers the Industrials sector, focusing on stocks such as Spire Global, Archer Aviation, and Joby Aviation. In addition to Canaccord Genuity, Archer Aviation also received a Buy from Cantor Fitzgerald's Andres Sheppard in a report issued on June 10. However, on May 29, Barclays maintained a Hold rating on Archer Aviation (NYSE: ACHR).
Reuters
07-03-2025
- Business
- Reuters
Intuitive Machines stock plummets after second apparent sideways moon landing
March 7 (Reuters) - Intuitive Machines' (LUNR.O), opens new tab shares tumbled 34% in premarket trading on Friday after its second moon lander, Athena, appeared to have landed on its side, mirroring the company's first lunar landing attempt last year. The six-legged Athena lander, touched down at a site about 100 miles (160 km) from the moon's south pole, but Intuitive Machines CEO Steve Altemus said data showed that the lander was on its side. The sideways position complicates power generation from its solar panels, rendering the mission "off-nominal," according to the company. Intuitive already received about 90% of its potential $120 million contract for landing, but some milestone payments depend on payloads being operational, according to Canaccord Genuity analyst Austin Moeller. Shares of the Houston, Texas-based company closed 20% lower on Thursday, after more than doubling in the past 12 months up to last close. The company's shares, which went public about two years ago, are susceptible to high volatility, with 56% available for trade. Athena carried 11 payloads and scientific instruments to the moon, including a drill to check for water ice, other resources in the lunar soil, the first data center and cellular network on the moon. Separately, SpaceX's Starship mega rocket, the largest in the world, exploded on Thursday, minutes after launch, raining debris off the coast of Florida and the Bahamas, in what was the Elon Musk-led company's second straight failure. As part of NASA's strategy to rekindle lunar exploration with reduced costs, Intuitive is among several companies leading the U.S.'s private-sector return to the moon. Austin-based Firefly Aerospace over the weekend celebrated a clean touchdown of its Blue Ghost lander, marking the most successful soft landing by a private company to date. "It (sideways landing) may have an impact on (Intuitive's) credibility, but we still think that they are one of the better positioned companies to capitalize on the industry," said Andres Sheppard, senior analyst at Cantor Fitzgerald. "In our view at least, it's not indicative of the company now being in a dire situation."
