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Archer Aviation Stock Soars on Analyst Upgrade, eVTOL Momentum

Asktraders News Team trader
Updated 9 Jun 2025

Archer Aviation's stock (NYSE: ACHR) are experiencing a significant rally today, trading at $11.43, up 12% from the previous close, fueled by a confluence of positive catalysts including an analyst upgrade, favorable regulatory developments, and continued progress on the company's electric vertical takeoff and landing (eVTOL) aircraft program.

With ACHR already rallying off the back of President Trump's recent executive order on drones, H.C. Wainwright analyst Amit Dayal's decision to raise the firm's price target on ACHR from $12 to $18, reiterating a “Buy” rating on the shares adds fuel for the bulls.

Dayal's optimism stems from the recent Executive Order aimed at accelerating market development for eVTOLs and drones within the public safety, defense, and military sectors. The analyst believes the expanding use of drones in conflicts like the Russia-Ukraine war is compelling national defense interests globally to significantly expand the inclusion of drones and eVTOLs in their security infrastructure. This is a key development for Archer, which is already working with the military and recently partnered with Anduril to build aircraft for these applications.

Archer's impressive one-year performance, with shares surging 247%, underscores the increasing investor confidence in the company's vision and execution. This growth trajectory is further supported by Archer's strategic partnerships and significant advancements in its manufacturing capabilities and FAA certification process.

The company's recent completion of its high-volume manufacturing facility in Covington, Georgia, capable of producing up to 650 aircraft annually by 2030, marks a crucial step towards commercializing its Midnight aircraft. The partnership with Stellantis as its exclusive contract manufacturer provides Archer with the capital, technology, and expertise needed to scale production efficiently. Furthermore, the strategic alliance with Anduril Industries to develop a hybrid VTOL aircraft for defense applications opens up new revenue streams and diversifies Archer's market reach.

Archer's progress in obtaining FAA certifications is another significant milestone. The company has already secured its Part 141, Part 135, and Part 145 certifications, paving the way for the launch of commercial air taxi operations. The ongoing pursuit of Part 142 certification, the final operational certificate required, demonstrates Archer's commitment to meeting regulatory standards and ensuring the safety and reliability of its aircraft.

Financially, Archer is in a strong position, with over $1 billion in liquidity, including cash and cash equivalents. This robust financial footing enables the company to fund ongoing aircraft development, navigate the FAA certification process, scale manufacturing capabilities, and advance its defense initiatives.

Archer's strategic partnerships with industry leaders like Palantir Technologies, KakaoMobility, and United Airlines further solidify its position in the urban air mobility market. The collaboration with Palantir to develop an AI foundation for next-generation aviation technologies promises to enhance air traffic control, ground operations, and route planning. The partnerships with KakaoMobility and InterGlobe Enterprises to launch air taxi services in South Korea and India, respectively, demonstrate Archer's commitment to expanding its global footprint. The collaboration with United Airlines to develop an air-taxi network in New York City aims to revolutionize urban transportation by connecting Manhattan with surrounding airports in a fraction of the time compared to traditional methods.

However, it's important to acknowledge potential risks. The eVTOL market is still nascent, and Archer faces challenges in obtaining regulatory approvals, scaling production, and managing competition. The company's higher valuation compared to peers, as reflected in its P/E and Price/Book ratios, suggests that investors have high expectations for future growth. Any setbacks or delays could negatively impact the stock price, with volatility working both ways.

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