ACHR - Archer's $3.5B Orderbook: Is the Sky the Limit for Rising eVTOL Star ACHR Stock?

2024-03-14 06:15:00 ET

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Archer Aviation (NYSE: ACHR ) remains among the top electric vertical takeoff and landing aircraft manufacturers investors are watching closely. Often called a “flying car” stock because of the nature of these vehicles, the company’s potential in the nascent air taxi sector is certainly worth considering.

I’ve been bullish on this sector for quite some time, with Archer remaining among my top picks. That view hasn’t changed. As the company generates revenue, it should gradually reduce its sustained losses. Recent contracts with the U.S. Air Force and investments from United Airlines (NASDAQ: UAL ) contribute to its strong financial backing.

With Stellantis’ (NYSE: STLA ) support, Archer aims to finish its Georgia manufacturing facility, gearing up for commercialization in 2025 with ongoing FAA certification and flight testing initiatives.

Archer continues to sustain growing losses in the absence of revenue, relying on capital markets and government contracts for funding. However, recent agreements with the U.S. Air Force and investments from United Airlines contribute to its financial backing. Here’s more on why I think this stock could be worthy of some speculative capital right now.

Partnership with Falcon Aviation

Recently, Archer announced a partnership with Falcon Aviation to install vertiport infrastructure in Abu Dhabi and Dubai, which will help boost the launch of its Midnight’s aircraft in 2025. The two companies aim to develop vertiports at the Falcon Heliport, the Palm in Dubai, Marina Mall, and Atlantis.

Offering a swift alternative to the two-hour drive between cities, Archer and Falcon plan to operate the Midnight flying car, promising a 30-minute scenic journey over water. This initiative addresses congestion issues in the prominent Abu Dhabi to Dubai corridor.

Increased Stakes

During the third quarter, Axxcess Wealth Management LLC initiated a new position in Archer Aviation, acquiring 20,086 shares valued at around $102,000. Similarly, another firm named Schonfeld Strategic Advisors LLC also added some ACHR shares into their portfolio, now owning over 162,000 shares with a value at $823,000. This has boosted confidence in Archer Aviation.

Stellantis also increased its stake in ACHR stock, adding an investment worth $15.6 million . Notably, ACHR stock has been moving in the right direction of late, surging over 3% since Friday’s after-trading hours.

ACHR Stock Could Be the eVTOL Company to Own

As a trailblazer in the urban air mobility sector, Archer Aviation is truly thinking way ahead of its peers, and many investors. With its futuristic vision on flying taxis, the company is set to see more progresses by 2025. Archer Aviation has set its flagship Midnight unit to innovate and revolutionize air taxi transportation.

Archer’s business outlook is bright, with a $3.5 billion order book spanning the U.S., United Arab Emirates, and India, showcasing its global growth potential. Plans for completing a manufacturing facility this year, capable of producing 650 eVTOLs annually, set the stage for strong revenue growth from 2025 onward.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

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