Archer Aviation (ACHR) made headlines on Sept. 22, when its Midnight eVTOL demonstrator reached a new high-altitude record. During a test flight from Salinas, California, the aircraft climbed to 7,000 feet, its highest altitude to date, and flew about 45 miles at over 120 mph. This milestone underscores Midnight’s strong performance envelope (even though typical urban air taxi operations target 1,500–4,000 feet). CEO Adam Goldstein hailed the achievement as proof of Archer’s “performance capabilities while maintaining the highest safety standards.”
The news sent ACHR shares up sharply in late September. But is this technical breakthrough enough to make ACHR stock a buy? Let’s dive deep and find out.
Valued at around $6 billion by market cap, Archer Aviation is an urban air mobility company specializing in electric vertical takeoff and landing (eVTOL) aircraft. Its mission is to revolutionize transportation by offering sustainable, safe, and affordable air taxi services. The company is actively working on obtaining certification for its eVTOL aircraft to facilitate air taxi operations in major global cities, with initial commercial operations planned for Abu Dhabi in the UAE.
Archer’s stock has been volatile this year. After a strong rally in early 2025, fueled by milestones like signing on as the official air taxi provider for the LA 2028 Olympics and advancing its UAE program, the shares hit a 52-week high near $13.92 in the spring. As of late September, ACHR traded around $9, down about 30% from its high, reflecting some profit-taking and broader market pressure. However, year-to-date (YTD), the stock is down nearly 4%.
ACHR’s valuation is notably high, with EV/Sales at 3,066 compared to the sector median of 2, reflecting a very expensive stock. Similarly, its price/sales are significantly elevated at 4,225, suggesting a costly investment compared to its peers.
www.barchart.com
Archer Aviation pushed its Midnight eVTOL program forward with several achievements. Recently, the Midnight prototype climbed to 7,000 feet, marking the highest in-flight altitude for the design and expanding its tested flight envelope for congested urban airspace.
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Production is also scaling, and Archer is now building six Midnight aircraft at once, with three in final assembly across its Silicon Valley and Georgia facilities, speeding the company toward commercial readiness. The firm secured high-profile partnerships and government support; Archer became the Official Air Taxi Provider for the LA28 Olympic Games and benefited from a June 2025 U.S. executive order creating an eVTOL pilot program that eases city deployments.
Internationally, Archer delivered its first Midnight to the UAE and began Abu Dhabi flight testing, with initial commercial payments expected as milestones are met. Finally, Archer expanded into defense by acquiring Overair’s tilt-rotor technology and composite manufacturing assets to strengthen its defense program pipeline.
Archer remains a development-stage company with no product revenue yet. In Q2 2025, the company reported a GAAP net loss of $206.0 million ($0.36 per share), widening from both the prior quarter and $106.9 million a year earlier as Archer pours money into R&D and production. Total operating expenses (R&D plus G&A) ran about $176.1 million, and adjusted EBITDA lost $118.7 million.
At the same time, Archer strengthened its balance sheet with cash and equivalents that rose to $1.724 billion (up from $834.5 million at the end of 2024) after recent financing, giving the company a sector-leading runway and only modest debt.
On a per-share basis, net cash exceeds roughly $3/share, implying enterprise value sits well below the ~$6 billion market cap. Management expects Q3 adjusted EBITDA losses of about $110–130 million.
No revenue was recognized in Q2, but Archer says it could start booking milestone payments from the Abu Dhabi Launch Edition and early U.S. demonstration agreements later this year. Overall, losses remain large, but the cash buffer buys time for certification and early sales.
Wall Street remains cautiously optimistic on Archer. Barchart shows a “Moderate Buy” consensus: five of 10 analysts rate Archer a “Strong Buy,” two rate it as a “Moderate Buy,” and three as a “Hold,” with an average 12-month price target near $12.40, implying roughly 33% upside from current levels. Individual targets span about $10 to $18, reflecting wide views on timing and execution.
J.P. Morgan stays “Neutral” with a $10 target, praising progress on FAA certification but flagging regulatory timing risk and the challenge of scaling approvals.
Needham keeps a “Buy” with a $13 call, citing the UAE flight tests and milestone payments that could produce first revenue by year-end or early 2026.
Moreover, HC Wainwright (Amit Dayal) remains bullish with an $18 target, noting zero revenue and widening losses but believing management largely hits milestone targets toward 2026 commercialization.
Analysts agree that Archer shows solid technical and partnership execution, yet they stress that the company must scale production and hit certification timelines to justify higher valuations. The spread in price targets captures that tradeoff: big upside if milestones come on time, substantial risk if they slip.
www.barchart.com
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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