Zinger Key Points
- Archer Aviation stock jumps 10.7% after Q4 report, despite a wider-than-expected loss.
- Analysts highlight Archer’s Launch Edition program and Stellantis deal as key growth drivers.
- Every week, our Whisper Index uncovers five overlooked stocks with big breakout potential. Get the latest picks today before they gain traction.
Archer Aviation Inc ACHR stock gained Friday after Wall Street analysts rerated it after its fourth-quarter report Thursday.
The company reported a fourth-quarter loss of $1.42 per share, missing analyst estimates for a loss of $1.24 per share.
Archer Aviation said its quarterly spending stayed within the guided range and remained close to flat for the second straight quarter.
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The company ended the period with $834.5 million in cash and equivalents.
JPMorgan analyst Bill Peterson maintained a Neutral rating on Archer Aviation with a price target of $9.
The timing of FAA certification is unclear and most likely even further delayed. The Launch Edition program could help monetize aircraft even before FAA certification in jurisdictions willing to move faster. The analyst noted the piloted flight as a significant de-risking event.
The Stellantis NV STLA contract manufacturing deal will close this quarter. The cash burn will likely rise in 2025 to support certification, with potential offsets from customers and partners.
Like the Joby Aviation Inc. JOBY report, the analyst noted this quarter was mixed, with further evidence of delays on the FAA front.
Peterson noted the Launch Edition program could at least lessen cash burn.
The analyst expects of the ~10 aircraft Archer will produce from Covington this year, more than half will be allocated for Launch deliveries, with the remainder reserved for the test fleet.
Peterson noted the U.S. Department of Defense’s application for the hybrid VTOL opportunity is more extensive and prioritized, coupled with Agility Prime’s declining role.
Peterson also noted that the first piloted flight in the U.S. is a long-awaited milestone that institutional investors need to see to be more comfortable with Archer’s technology.
Peterson projected a first-quarter loss of $0.21 per share.
ACHR Price Action: Archer Aviation stock is up 8.08% at $8.56 at last check Friday.
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Courtesy of Archer Aviation, Inc.
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