Archer Aviation (NYSE:ACHR) made headlines when it secured a deal to serve as the exclusive air taxi provider for the 2028 Los Angeles Olympics, and the company’s latest move indicates it’s already preparing for the occasion.
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Alongside its Q3 report last week, the eVTOL manufacturer announced plans to acquire Hawthorne Airport, located roughly three miles from Los Angeles International Airport (LAX), in a $126 million cash transaction. The 80-acre site offers room for expansion to about 400,000 square feet, includes a 5,000-by-100-foot runway, and operates within controlled Class D airspace just outside LAX’s Class B zone.
Cantor Fitzgerald analyst Andres Sheppard described the acquisition as pleasantly surprising and encouraging, noting that the facility is expected to serve as Archer’s main operational hub for air taxi services in Los Angeles. Situated near key city landmarks such as SoFi Stadium, Downtown L.A., and The Forum, the location positions Archer to play a central role during the 2028 Olympic and Paralympic Games. As the exclusive air taxi provider for the events, and the only eVTOL sponsor for Team USA, Sheppard believes the new hub will be pivotal in supporting transportation during the Games.
While that milestone is still a few years away, Archer’s financial footing appears strong. Following a recent capital raise, the company reported ~$1.7 billion in cash and total liquidity of around $2.2 billion, giving it one of the strongest balance sheets in the industry. This robust financial position reinforces Sheppard’s confidence in Archer’s path toward commercialization and FAA certification.
In that regard, the company’s Launch Edition Program is focused on introducing its Midnight aircraft in markets poised to adopt eVTOL technology early – potentially even ahead of FAA certification. Management has indicated that Abu Dhabi Aviation will be Archer’s first customer, backed by definitive agreements with both Abu Dhabi Aviation and the Abu Dhabi Investment Office. Earlier this year, Archer delivered its first Midnight aircraft to the UAE and begun receiving milestone-related cash payments. The company is targeting initial revenues in 2026 and expects to secure certification in the UAE as early as Q3 2026, a timeline Sheppard views as “encouraging.”
Meanwhile, Archer continues piloted flight testing of its Midnight aircraft as it approaches Type Inspection Authorization (TIA), the final stage before FAA Type Certification. Although the recent U.S. government shutdown caused minor delays, management noted that the team has already completed “thousands of ground tests and hundreds of vertical and conventional takeoff flights” in preparation for TIA. Based on Sheppard’s estimates, full certification is unlikely before Q4 2026.
“Overall,” the analyst summed up, “We remain bullish on ACHR at current levels.” Accordingly, Sheppard assigns ACHR shares an Overweight (i.e., Buy) rating, backed by a $13 price target. Should the figure be met, investors will be pocketing returns of 54% a year from now. (To watch Sheppard’s track record, click here)
The Cantor view gets the backing of most other analysts as well; based on a mix of 6 Buys vs. 1 Hold, the stock claims a Strong Buy consensus rating. The forecast calls for one-year gains of 49%, considering the average price target clocks in at $12.43. (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.