Archer Aviation Inc. (ACHR), an electric aircraft maker developing air taxis and autonomous aviation systems, is getting another bullish Wall Street read as its Boeing (BA) deal pushes the company further into defense and drone technology.
Canaccord Genuity four-star analyst Austin Moeller reiterated a Buy rating and $12 price target on Archer, saying the company is becoming more focused on military drones, autonomous aviation, and software alongside its Midnight air taxi program.
After rising 8.47% on Tuesday to close at $6.79, ACHR shares continued the trend with an additional 1.6% rise in pre-market today.
Boeing Deal Adds Revenue and Defense Exposure
Moeller sees Archer’s planned acquisitions of Boeing’s Insitu, Wisk Aero, and SkyGrid businesses as a key part of that shift. Moeller wrote that Archer is “evolving into a more defense tech-focused business,” with military drones and autonomous aviation becoming a larger part of the company’s strategy.
Insitu stands out because it already generates about $200 million in annual revenue and is profitable. It has delivered more than 4,000 drones and logged more than 2 million flight hours across customers in 35 countries. Moeller called the acquisition “prudent,” saying Archer should be able to grow sales of Insitu products such as ScanEagle and bring existing payloads to its Thunder platform.
Wisk would add autonomous aircraft technology, including flight controls and sensors, while SkyGrid would bring air traffic software that could work with Archer’s Zee aviation AI model. Boeing is also expected to increase its stake in Archer to 19.75% and gain a board seat as part of the deal.
Canaccord also raised its revenue forecasts. The firm now expects Archer to generate $13.4 million in revenue in 2026, up from its previous estimate of $7.6 million. Its 2027 forecast jumped to $325.5 million from $124.5 million.
Cash Burn and FAA Timing Still Matter
The bullish long-term view comes with some familiar risks. Archer reported a Q2 adjusted EBITDA loss of $177.1 million and used about $194 million in free cash during the quarter. Its cash balance fell about 12% sequentially to roughly $1.57 billion.
Spending remains heavy as Archer develops Midnight, Thunder, and Zee. Canaccord now expects a 2026 adjusted EBITDA loss of $717 million, wider than its previous $689.2 million forecast.
Midnight testing is progressing, with management saying “multiple” prototypes are flying on a near-daily basis. Archer also said it is “building 10 aircraft” for certification work, with two already flying and two more expected to take flight in Q4 2026 or Q1 2027.
The weak point is the FAA timeline. Canaccord noted that Archer did not provide details on the timing of Phase 4 testing and analysis for Midnight’s airworthiness certification. That leaves regulatory progress as one of the biggest near-term factors for the stock.
Moeller’s broader view is that defense is becoming “an increasingly important focus” of Archer’s core business. If Archer can close the Boeing deal by year-end while keeping Midnight certification on track, that broader mix of drones, defense, autonomy, and air traffic software could become a more meaningful part of the valuation case behind the firm’s $12 target.
According to TipRanks data, Austin Moeller has a -42% success rate with an average return per rating of 6.30%.
Is ACHR a Good Stock to Buy?
According to the Street’s analysts, Archer Aviation is considered a Strong Buy, with an average ACHR stock price target of $11.60. This implies about 70% upside from the current price.
