Archer Aviation plans to produce two air taxis per year at its Georgia facility. / Photo: LinkedIn/Archer

Quotes on Archer Aviation, a company developing electric air taxis, soared 22% yesterday, May 13, after it announced a partnership with software developer Palantir to create AI for its aircraft.

Details

Yesterday, Archer rose 22.9% on the Nasdaq to $11.16 per share following the release of its first-quarter earnings, in which the company revealed a partnership with Palantir to develop software utilizing AI to improve aviation systems.

Archer has yet to turn a profit, with its first project, Midnight, still awaiting certification. The company reported a net loss of $0.17 per share, about 40% below analyst expectations of a $0.28 per share net loss. Operating expenses for the quarter came in at $144.0 million, basically flat compared to the same period the previous year, when they stood at $142.2 million. With over $1 billion in cash, Archer guides for around $450 million in operating expenses this year.

Another positive development for Archer is the approaching launch of Midnight. Under a partnership with key UAE entities inked in December, the first customers will be Abu Dhabi Aviation and Ethiopian Airlines. According to the press release, Archer plans to deliver its first aircraft to the UAE this summer.

Analyst insights

In a note released yesterday, Benchmark analyst Josh Sullivan reiterated his “buy” rating for Archer at a target price of $12 per share. Chris Pierce, an analyst at the investment bank Needham, also maintained his “buy” rating on the stock with a target price of $13 per share.

HC Wainwright & Co. analyst Amit Dayal likewise reiterated his “buy” rating and $12.50 per share target price. He notes that regulatory support for the eVTOL market remains strong. The analyst expects Archer to manufacture more than 300 eVTOL aircraft annually by 2030, for cumulative production of over 3,000 units between 2034 and 2036. Dayal projects revenue of about $18 million in 2025, over $42 million in 2026, and approximately $1 billion by 2028.

JP Morgan was the only house to respond to the update with caution. Analyst Bill Peterson maintained his “neutral” rating with a target price of $9 per share, citing uncertainty surrounding the certification timeline for Midnight.

About Archer Aviation

Archer Aviation is a California-based manufacturer of electric aircraft founded in 2018. The company is developing electric air taxis that can take off and land vertically like helicopters but are designed to be quieter, more eco-friendly, and ultimately more cost-effective for short urban and suburban trips. Archer plans to produce air taxis at its manufacturing facility in the state of Georgia.

By 2023, Archer had raised more than $1 billion from investors. It has over $6 billion in indicative orders from the likes of Southwest Airlines, United Airlines, and automaker Stellantis. Archer’s goal is to provide air taxi services that replace long car trips with 15-minute flights, saving hours otherwise spent in traffic. It also plans to link Manhattan with nearby airports using its aircraft.

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