Value Recognition For Archer's eVTOL: Analyst Points To Growing Case For Valuation Parity With Peer
Portfolio Pulse from Shivani Kumaresan
Benchmark analyst Josh Sullivan reiterated a Buy rating on Archer Aviation Inc (ACHR) with a price target of $12. This follows Boeing Co (BA) becoming a strategic partner and investor in Archer as part of a $215 million investing round. Archer also secured two new contracts with the Air Force totaling $142 million and received FAA authorization for flight testing of its eVTOL Midnight aircraft. Despite these developments, ACHR's shares are trading lower by 5.93% at $5.49.
August 11, 2023 | 6:20 pm
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NEUTRAL IMPACT
Joby Aviation trades at double ACHR’s valuation, but the case for valuation parity with JOBY is growing, according to the analyst.
The analyst's comment suggests that ACHR's valuation could potentially rise to match JOBY's, which could impact JOBY's stock. However, this is speculative and the short-term impact is uncertain.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Archer Aviation Inc received a Buy rating from Benchmark analyst, secured two new contracts with the Air Force, and received FAA authorization for flight testing. However, its shares are trading lower.
The positive analyst rating, new contracts, and FAA authorization are all positive developments for ACHR. However, the stock price is currently down, which may be due to market volatility or other factors not mentioned in the article.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Boeing Co became a strategic partner and investor in Archer Aviation Inc as part of a $215 million investing round.
Boeing's investment in Archer Aviation is a positive development for the company, indicating confidence in Archer's business and potential for growth. This could potentially impact Boeing's stock positively.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50