Archer Aviation’s Strategic Positioning and Growth Potential: A Buy Rating by Amit Dayal

Archer Aviation (ACHR – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Amit Dayal from H.C. Wainwright maintained a Buy rating on the stock and has a $12.50 price target.

Amit Dayal has given his Buy rating due to a combination of factors that highlight Archer Aviation’s strategic positioning and growth potential. One of the key reasons is Archer’s selection as the official air taxi provider for the LA28 Olympic and Paralympic Games, which is seen as a significant marketing win and indicative of the company’s commercial readiness. This partnership is expected to provide Archer with global visibility and an opportunity to showcase its eVTOL technology in a city known for traffic congestion, thus demonstrating the practical benefits of their intra-city air mobility solutions.
Furthermore, Dayal notes Archer’s business model, which includes revenue streams from direct sales of eVTOL units and urban air mobility flight services, as well as maintenance and software support. The company is projected to achieve substantial growth, with expectations to manufacture over 300 eVTOLs annually by 2030 and beyond, and to reach approximately $1 billion in revenue by 2028. Despite potential risks such as market adoption and regulatory challenges, the analyst’s price target of $12.50 reflects confidence in Archer’s ability to execute its business plan effectively, supported by a detailed financial projection and a discounted cash flow analysis.

In another report released on May 13, Needham also reiterated a Buy rating on the stock with a $13.00 price target.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ACHR in relation to earlier this year.