We came across a bullish thesis on Archer Aviation Inc. (ACHR) on wallstreetbets Subreddit Page by Xtianus25. In this article, we will summarize the bulls’ thesis on ACHR. Archer Aviation Inc. (ACHR)’s share was trading at $9.27 as of Jan 30th. ACHR’s trailing P/E was 6.95 according to Yahoo Finance.
A futuristic electric vertical takeoff and landing aircraft soaring through the sky.
Archer Aviation (ACHR) is entering a pivotal phase in 2025, with significant catalysts that could drive its growth and bring the company closer to its goal of launching commercial eVTOL operations in the UAE by late 2025. The company has been relatively quiet on the news front recently, but with the upcoming certification milestones, pilot-only flight tests, and potential international deals, Archer is positioned to make substantial progress in the next few months. Archer’s Chief Commercial Officer, Nikhil Goel, recently outlined some key milestones, signaling the company’s readiness for a major breakthrough. One of the most exciting developments is the possibility of piloted flight demonstrations starting as early as February 14, 2024, which could be an important step toward achieving full Type Certification. While the rumor surrounding these demonstrations stems from speculative sources, Archer’s progress on the certification front is undeniable, with the company recently completing essential software and systems integration audits for STAGES-1 and STAGES-2, which brings them closer to the next critical phase in the certification process.
Archer has streamlined its certification process from five phases to four, expediting the Type Inspection Authorization (TIA) process required for commercial operation approval. This adjustment is crucial as it sets the company on track to meet its aggressive timeline. With the TIA phase nearing completion, Archer is well-positioned to initiate its first pilot-only flight demonstrations using the Midnight aircraft. These demonstrations are expected to take place soon, as time is of the essence in order to meet the UAE’s expectations for a 2025 commercial launch. The UAE’s confidence in Archer’s timeline further strengthens the company’s case, as they are fully committed to Archer’s success, with a clear pathway to regulatory approval through the UAE’s General Civil Aviation Authority (GCAA).
Archer’s upcoming earnings call on February 24, 2025, is expected to bring more clarity on these developments, particularly regarding the company’s progress with certifications and pilot flights. In addition, there is anticipation of announcements surrounding potential partnerships with key players in the Middle East, such as Saudi Arabia’s transportation agency, GACA. These partnerships could significantly accelerate Archer’s growth and unlock additional revenue streams, especially as they start producing small batches of the Midnight aircraft, marking the company’s first real revenue-generating activity. This move could further solidify Archer’s position as a leader in the eVTOL space, alongside competitors like Joby, eHang, and Vertical, which are also pushing forward in the industry.
Archer’s military applications in partnership with Anduril also hold promise, with further announcements expected throughout the year, providing additional avenues for growth and diversification. The company is also poised to benefit from favorable regulatory conditions in the U.S., where the current administration has promised to prioritize investments in manufacturing and development for companies like Archer and Anduril, who are committed to investing over $1 billion in the U.S. Archer’s ongoing investments and partnerships position it well to take advantage of these opportunities, adding to the company’s long-term growth prospects.
As Archer navigates these upcoming milestones, investors should expect a surge of news and updates that could significantly impact the stock price. With all of these catalysts in play, the company is well-positioned for a strong 2025, making it an attractive investment opportunity. Archer’s focus on expanding its fleet, progressing through the certification phases, and securing high-profile partnerships with international players further strengthens its position in the eVTOL market. With a potential price target of $20–$30 per share, Archer is at a critical juncture, and investors are watching closely for the company’s next moves.
Archer Aviation Inc. (ACHR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held ACHR at the end of the third quarter which was 21 in the previous quarter. While we acknowledge the risk and potential of ACHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ACHR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.