Archer Aviation (ACHR) Stock Forecast & Price Target

Archer Aviation Inc has successfully raised over $700 million recently, significantly increasing its cash balance by over $300 million quarter-over-quarter, which positions the company to support operations for the next two years despite a $125 million burn in the last quarter. The projected growth of research and development expenses by 4-7% annually from 2026 to 2028, coupled with the expected delivery of products under the Launch Edition strategy, indicates a strong revenue potential in the near term through higher average selling prices and margins. Furthermore, Archer's sizable $6 billion order book and strategic partnerships, such as with Stellantis, alongside advancements in FAA regulations, bolster the company's outlook as a key player in the sustainable air mobility market.

Archer Aviation Inc faces significant challenges due to persistent regulatory barriers that delay the certification of its eVTOL aircraft, contributing to uncertainty surrounding its sales and potential aircraft pipeline cancellations. The company's financial performance has shown a worsening trend, with an adjusted EBITDA loss increasing to $94.8 million in 4Q24 from $85.2 million in the previous year, reflecting ongoing operational struggles. While there is cash on the balance sheet to fund operations until FY26, the lack of clarity regarding FAA certification timelines poses a substantial risk to Archer's future profitability.