Archer Aviation (ACHR) held his call for results in the second quarter last week. After the title decreased at the start, he began to attract bullish attention from Wall Street while analysts continued to support the stock. The title closed $ 9.82 on Friday.
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Canaccord’s point of view on archer
The last to reaffirm its purchase rating is the four -star analyst of Canaccord, Austin Moeller, with a price target of $ 13, slightly lower than its previous view of $ 13.50. Despite the decrease, Moeller highlights the progress of the company’s regular production and the solid balance sheet. He noted that even with a loss of considerable adjusted Ebitda in the second quarter, Archer has widened the production of his midnight planes on his sites in California and Georgia.
The thrust is supported by a cash reserve of $ 1.7 billion which was recently strengthened thanks to a capital increase, offering the company flexibility to continue its growth plan. At the same time, Archer Aviation is progressing towards the last stage of certification with the Federal Aviation Administration, which remains a key obstacle for the air taxi market. Moeller underlined the work of the company to refine manufacturing and improving efficiency, while also noting the income potential of Launch Edition customer programs.
However, certain risks remain. The execution times have evolved at a rapid pace, and there is a chance that society can miss its own objectives. Meanwhile, the last quarter has shown an adjusted loss of Ebitda of $ 118.7 million and a free cash outing of around $ 122 million.
Overall, Archer Aviation has solid support from analysts who see progress in production, certification and partnerships. However, investors are also faced with the reality of cash burns and continuous regulatory measures.
Is Archer Aviation Stock a good purchase?
Despite the speculative nature of the action, Wall Street analysts remain optimistic about the company. Based on recent eight notes, Archer Aviation has a “high purchase” consensus with an average price target of 12 months of $ 12.06. This implies an increase of 22.81% compared to the current price.
See more ACHR analyst notes
Warning and disclosure
