It’s been a while since we last heard from aviation upstart Archer Aviation (NYSE:ACHR), who is quite possibly closer than anyone yet to finally delivering on a promise the future has been giving us since “The Jetsons.” Specifically, it’s the flying car, and though it doesn’t quite look the way you’d expect, it’s looking to function that way. Investors were over the moon with a future rush, sending Archer shares up over 3% in Wednesday afternoon’s trading.
Archer’s electric vertical take-off and landing vehicle (eVTOL) recently concluded Phase 1 flight testing. It actually managed to do so in less time than many were expecting and will be able to move to the second stage of testing accordingly. Phase 1 called for the craft to undergo a series of maneuvers, increasing in complexity as each step went along, in a bid to gather flight data. Now, it will enter Phase 2, where it can not only take off but also land and engage in an active wingborne flight. Should it clear that phase successfully, only one phase remains: Phase 3, which will have it fly simulated commercial routes.
But When Do We Get Our Flying Cars?
The bad news here is that Archer’s plans don’t appear to include wide-scale commercial releases right now, so seeing these crop up on a Ford (NYSE:F) or even an Archer dealer lot seems pretty unlikely. Right now, Archer’s main goal is to see these used in “electric air taxi” services, which will ultimately cut commuting time in half or more. But on the plus side, maybe the dream of a food delivery service via an electric air vehicle will also at last be realized, as so many have tried to do for years with smaller drone aircraft. Archer also recently inked a deal with NASA to test battery cell and system designs that may help get these aircraft into more hands more rapidly.
Is Archer Aviation a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ACHR stock based on three Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 73.65% rally in its share price over the past year, the average ACHR price target of $8.50 per share implies 63.46% upside potential.
