Is Now the Right Time to Buy Archer Aviation Stock (ACHR)?

Archer Aviation aims to transform the future of travel, but is its stock a smart buy right now?

U.S.-based Archer Aviation (ACHR) is gaining serious momentum as the race to revolutionize urban air mobility heats up. As the company moves closer to commercial launch and regulatory milestones, investors may be looking at a rare ground-floor opportunity. However, the path forward involves many critical milestones, and a setback in any one area could derail the entire investment thesis.

Archer Aviation specializes in electric vertical take-off and landing (eVTOL) aircraft designed for urban air mobility. Currently, the company isn’t generating revenue and remains in a loss-making phase. Building a next-gen air mobility platform is both time-consuming and capital-intensive. As a result, ongoing losses are likely in the near term. For conservative investors, this high-risk stage may be a deterrent.

The Road Ahead

To begin with, Archer Aviation is gearing up to scale production, with plans to build about 10 Midnight aircraft in 2025. Notably, Midnight is Archer’s flagship aircraft with a 100-mile range and speeds up to 150 mph. The majority of midnight aircraft will be used for rigorous testing to secure FAA certification, a critical milestone for launching commercial operations. While achieving regulatory approval will be a breakthrough for the company, it still faces a challenging road ahead to get there.

That said, Archer Aviation is also exploring markets with more flexible regulatory environments. The company has partnered with Abu Dhabi to launch its first commercial air taxi service, aiming for a 2025 debut. Abu Dhabi will serve as the crucial proving ground, and if the rollout succeeds, it could pave the way for a promising future for Archer Aviation.

Meanwhile, Archer has secured other significant partnerships. This includes United Airlines’ (UAL) $1 billion order for 200 of Archer’s aircraft. Additionally, Archer has collaborated with Stellantis (STLA) for manufacturing support and with Anduril Industries to explore defense applications for its eVTOL technology.

Is Archer a Good Stock to Buy?

Overall, analysts have a Strong Buy consensus rating on ACHR stock based on six Buys and one Hold assigned in the last three months. The average Archer Aviation share price target of $12.29 implies a 19% upside potential.

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