ACHR - Archer Aviation is called an undervalued eVTOL stock by JPMorgan after earnings

2023-03-10 07:30:17 ET

JPMorgan defended Archer Aviation ( NYSE: ACHR ) after taking in the company's Q4 earnings report. Overweight

While Archer Aviation ( ACHR ) posted a larger than anticipated EBITDA loss, analyst Bill Peterson said Archer is making solid progress towards its goal of beginning commercial operations in 2025 with type certification towards the end of 2024 or beginning of 2025.

The firm believe Archer will be among a few eVTOL companies to certify with the FAA in the U.S. in that timeframe.

"We think the company is allocating capital prudently (e.g. minimal capex for production in 2023) with a capital-light operating model, though it’s likely that Archer will tap into equity capital from Stellantis over the next few years, and potentially raise additional capital ahead of high-volume production, in our view."

JPMorgan kept an Overweight rating on ACHR and price target of $5 following the earnings update. The eVTOl stock is seen as undervalued relative to peers.

Shares of Archer Aviation ( ACHR ) rose 0.71% premarket to $2.85.

Read the Archer Aviation ( ACHR ) earnings call transcript.

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