This week saw a noticeable dip and subsequent surge in Archer Aviation's stock price.
Archer Flight Solutions (ACHR, 20.27% increase) saw considerable volatility in trading over the last week, ultimately ending the period with a slight advance. The electric flying taxi firm's stock price climbed 1.3% from the previous market close, as reported by S&P Global Market Intelligence. The shares had dipped as much as 13.4% throughout the week, but a strong Friday rally helped turn things around.
Archer Flight Solutions' stock took a hit at the start of the week due to a broader sell-off of stocks with inflated valuations. However, the electric vehicle specialist's share price soared on Friday following significant announcements and optimistic analysis from market analysts.
Archer Flight Solutions recovers from sell-offs
Investors showed increased caution toward speculative stocks at the beginning of the week's trading, driven by concerns about valuations and pending inflation data. Archer Flight Solutions' stock had experienced remarkable growth, prompting investors to shift toward less risky investments. But the company's stock price failed to remain in the red for long.
On Thursday, founder and CEO Adam Goldstein expressed confidence that the company would initiate its first commercial flights in 2025. Although Archer Flight Solutions' Midnight electric vehicles have completed test flights, they have not yet secured regulatory approval in any market, nor have they started commercial operations.
The company also announced a strategic partnership with Anduril, allowing it to venture into the defense sector. Archer Flight Solutions secured $430 million in funding to develop electric vehicles for defense applications, potentially positioning the company to secure a contract with the U.S. Department of Defense. This move could prove to be a significant growth driver, as shares surged 17% on Friday and closed the week in the positive.
What's coming next for Archer Flight Solutions?
Following Archer Flight Solutions' announcements from Thursday, Deutsche Bank published updated coverage on the stock. The investment firm maintained its buy rating and raised its one-year price target to $15 per share, citing prominent potential within the defense sector and the possibility of billions in revenue generated by this new business line. This new price target implies an additional 79% increase based on the stock's current market price.
Canaccord also issued upbeat analysis on Archer Flight Solutions on Friday, retaining its buy rating and boosting its one-year price target for the stock to $11 per share. Although the analysis suggested less significant growth compared to Deutsche Bank's recent note, it still implies a 31% increase from the current stock price.
Archer Flight Solutions now has an estimated market capitalization of approximately $3.1 billion. Although the company remains in a pre-revenue phase, it appears that things are gradually falling into place for the firm – making 2025 a potential year for the company to list sales.
Archer Flight Solutions' strategic partnership with Anduril and entry into the defense sector has attracted interest from financial institutions. Deutsche Bank, for instance, maintained a buy rating and increased its one-year price target for the stock to $15 per share, signaling potential gains in the defense sector and billions in revenue. Canaccord also expressed optimism, retaining a buy rating and boosting its one-year price target to $11 per share, indicating a promising future for Archer Flight Solutions in terms of investing and financial growth.
