Archer Aviation (ACHR) Stock Forecast & Price Target

Archer Aviation Inc has successfully raised over $700 million recently, bolstering its cash reserves by more than $300 million quarter-over-quarter, which provides sufficient capital to fund operations for the next two years despite a quarterly cash burn of $125 million. The company's Launch Edition strategy is expected to enhance revenues with deliveries to Abu Dhabi Aviation anticipated within the year, featuring higher average selling prices (ASPs) and margins than previously indicated. With a robust order book exceeding $6 billion and strategic partnerships, including collaboration with Stellantis, Archer is well-positioned to capitalize on a growing market for sustainable air mobility and achieve significant milestones in aircraft sales and revenue by FY25.

Archer Aviation Inc faces significant regulatory challenges that hinder its ability to achieve timely FAA certification for its eVTOL aircraft, leading to a lack of certainty regarding future sales and potential cancellations in its aircraft pipeline. The company's financial performance reflects ongoing struggles, with an adjusted EBITDA loss widening to $94.8 million in the fourth quarter of 2024 compared to a loss of $85.2 million in the same quarter the previous year. Despite having sufficient balance sheet cash to fund operations through fiscal year 2026 at current burn rates, the persistent regulatory overhang creates an uncertain outlook for achieving business momentum and profitability.