Archer Aviation (NYSE:ACHR) investors are likely to start the new week in a reflective mood after the shares tumbled ~8% in Friday’s session. The pullback followed the eVTOL maker’s Q3 results, which, given Archer remains pre-revenue, unsurprisingly contained no sales.
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But they did include operating expenses that rose year-over-year to $174.8 million, resulting in a wider net loss of $129.9 million vs. the $115.3 million loss of a year earlier. Adj. EBITDA also declined further to -$116.1 million from -$93.5 million in 3Q24.
Meanwhile, Archer said it was acquiring Hawthorne Airport for $126 million in cash. The 80-acre property includes roughly 190,000 square feet of terminal, office, and hangar space, and is positioned less than three miles from LAX. Archer intends to use the site as an operational hub for its upcoming air taxi network in Los Angeles. The company also announced a capital raise of $650 million, bringing its total available cash balance to more than $2 billion.
While investors seemed less than enamoured with all that, H.C. Wainwright analyst Amit Dayal thinks the readout featured plenty of positives.
The analyst believes the acquisition of the LA airport reinforces the company’s dedication to the Olympics and marks a significant step in establishing a strong foothold in a key U.S. market for eVTOLs. The site could also serve multiple purposes, supporting continued aircraft development and commercialization.
“Management emphasized that this was a unique opportunity, and it does not intend to pursue any additional deals of a similar nature, so we believe the bolstered balance sheet will not be burdened by these types of transactions going forward,” Dayal commented.
The analyst thinks the company’s financials will start accounting for revenues from Hawthorne airport operations and payments from launch partners by the first quarter of next year.
Furthermore, Dayal thinks the solid balance sheet will boost Archer’s position when engaging with partners, customers, and other stakeholders who might look for “liquidity-related comfort” before entering major, long-term contracts – particularly in the defense sector.
The analyst anticipates higher flight activity across multiple regions as the company utilizes the eVTOL Integration Pilot Program (eIPP) in the U.S. and advances commercialization efforts in the Middle East and Asia. Lastly, management noted that the Type Inspection Authorization (TIA) campaign with the FAA (Federal Aviation Administration) could kick off before the year is out.
“We believe going into 2026, investor focus will include the outlook for aircraft manufacturing ramp,” Dayal summed up.
All in, Dayal remains firmly in the bull camp on Archer Aviation, assigning the stock a Buy rating and a Street-high price target of $18, implying potential 12-month gains of 120%. (To check out Dayal’s track record, click here)
Looking at the broader Street view, 6 other analysts also cover Archer: 5 recommend buying the stock, while one calls it a Hold. The overall view lands at a Strong Buy consensus, with an average price target of $12.43, implying upside potential of ~52% over the coming year. (See ACHR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.