Archer Aviation (ACHR) Stock Forecast & Price Target

Archer Aviation Inc has successfully raised over $700 million, increasing its cash balance by more than $300 million quarter-over-quarter, positioning the company to fund operations for the next two years while managing a quarterly burn of $125 million. The anticipated growth in research and development expenditures of 4-7% annually from 2026 to 2028, along with an active commercialization strategy, is expected to generate significant near-term revenues and positive gross margins, particularly through the launch of its Aircraft as a Service model. Moreover, the partnership with Stellantis and advancements in FAA air taxi regulations further solidify Archer's competitive advantage and long-term market potential in the sustainable air mobility sector.

Archer Aviation faces significant headwinds stemming from persistent regulatory barriers that are delaying the certification process for its electric vertical takeoff and landing aircraft, leading to cancellations in its aircraft pipeline. The company's financial health is further challenged by a widening adjusted EBITDA loss of $94.8 million in the fourth quarter of 2024, compared to a loss of $85.2 million in the fourth quarter of 2023. With uncertainty surrounding the timing of FAA certification remains unresolved, the company's outlook is clouded, despite having sufficient cash reserves to sustain operations through fiscal year 2026 at current burn rates.