Archer Aviation (ACHR) Stock Forecast & Price Target

Archer Aviation Inc. is strategically positioned to execute its extensive order book exceeding $6 billion, demonstrating an ability to generate revenues before receiving full FAA regulatory approval through incremental deliveries. The company has successfully raised over $700 million, significantly bolstering its cash reserves to sustain operations for up to two years, despite a notable quarterly cash burn, which underlines its strong financial footing. Additionally, Archer's established relationships within the aerospace sector and its partnership with Stellantis contribute to a more efficient production ramp and optimistic regulatory outlook, foreshadowing potential profitability ahead of its competitors.

Archer Aviation is facing significant challenges due to ongoing regulatory barriers that are stalling aircraft certification and leading to cancellations within its aircraft pipeline. The company's financial struggles are evident, illustrated by an adjusted EBITDA loss of $94.8 million in 4Q24, which reflects a worsening from a loss of $85.2 million in the previous year. Additionally, uncertainty regarding the timing of FAA certification for eVTOLs persists, creating a cloud of doubt over future operational viability and commercial sales.