Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 3 Jul, 25 | ACHR | Buy | USD 10.03 | USD 10.53 | USD 11.13 | 7 days | Closed |
4.99%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Archer Aviation Inc., together with its subsidiaries, engages in designs, develops, and operates electric vertical takeoff and landing aircraft for use in urban air mobility. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. The company is headquartered in San Jose, California.
Improved Net Loss: The company reduced its net loss to $93.4 million in Q1 2025 from $198.1 million in Q4 2024, signaling better cost management despite continued investment
Strong Liquidity: Archer ended Q1 2025 with $1.03 billion in cash and equivalents, the highest in its history, up from $834.5 million in Q4 2024
Rising Non-GAAP Expenses: Non-GAAP total operating expenses increased to $113.1 million, a 27% rise year-over-year from $89.1 million in Q1 2024.
Increased Adjusted EBITDA Loss: Archer’s adjusted EBITDA loss widened to $109.0 million, up from $86.8 million in Q1 2024, driven by higher operating costs
Archer's ability to achieve timely FAA certification, scale manufacturing, and execute on early commercial deployments poses a significant risk, as delays in any of these areas could materially impact its revenue generation and market positioning
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 10.03 | 9.23 | 10.53 | 11.13 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Robust Financial Standing and Capital Raise: Archer Aviation concluded the first quarter of 2025 with a record-high cash balance of $1.03 billion and an additional $6.5 million in restricted cash. This significant increase of $195.9 million from the prior quarter primarily stemmed from a successful $301.8 million capital raise. The strengthened balance sheet positions the company to accelerate its commercialization efforts, including early deployments of its Midnight aircraft.
Strategic Partnerships and Market Expansion: During Q1 2025, Archer deepened its industry alliances. A foundational AI partnership was formed with Palantir to integrate next-generation artificial intelligence into aviation systems, including manufacturing, control, and routing. The company also expanded its “Launch Edition” customer base by adding Ethiopian Airlines alongside Abu Dhabi Aviation, further solidifying its footprint in early adopter markets.
Commercialization Progress and Operational Milestones: Archer made tangible strides toward commercial deployment. Key milestones include the upcoming delivery of the first Midnight aircraft to the UAE, pilot training in collaboration with Etihad Aviation Training, and regulatory coordination with the UAE’s General Civil Aviation Authority. The company also showcased its plans for the New York City air taxi network in partnership with United Airlines, targeting rapid airport transfers within 5–15 minutes.
Ongoing Investment in Development and Certification: In Q1 2025, Archer incurred GAAP operating expenses of $144 million, reflecting strategic investments in aircraft design, development, certification, and scaling production. Of this, $103.7 million was allocated to R&D and $40.3 million to general and administrative functions. Non-GAAP operating expenses totaled $113.1 million, up from $89.1 million in Q1 2024, driven largely by workforce expansion and supplier investments.
Financial Performance Metrics and Adjusted Losses: Archer reported a net loss of $93.4 million in Q1 2025, an improvement from $198.1 million in Q4 2024 and $116.5 million in Q1 2024. The quarter’s adjusted EBITDA loss stood at $109.0 million, a year-over-year increase of $22.2 million, reflecting intensified development efforts. Despite these losses, the company remains focused on achieving future profitability through operational scale and certification milestones.
Future Outlook and Risk Management: For Q2 2025, Archer anticipates an adjusted EBITDA loss between $100 million and $120 million, citing ongoing development and scaling initiatives. While management continues to emphasize long-term profitability, it acknowledges the variability in non-GAAP items such as stock-based compensation and warrant valuations. The company also reaffirmed its strategic focus on certification with both the FAA and global counterparts to facilitate near-term market launches.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Archer Aviation Inc (NYSE: ACHR) at the closing market price of USD 10.03, as on July 03, 2025 at 8:05 AM PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Aerospace & Defense
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to EBITDA (x) | |
|---|---|---|---|---|---|---|---|---|
| ACHR Archer Aviation Inc |
- -% | 13.40 | - | - | - | 9.46 | -0.3861 | |
| BA The Boeing Company |
-2.265 0.98% | 228.74 | - | 294.12 | 1.68 | - | 2.25 | 111.56 |
| EADSY Airbus Group NV |
0.25 0.46% | 54.10 | 27.76 | 21.51 | 1.93 | 7.21 | 1.79 | 13.93 |
| EADSF Airbus Group SE |
2.11 0.99% | 215.80 | 27.24 | 21.28 | 1.91 | 7.14 | 1.79 | 13.93 |
| RTX Raytheon Technologies Corp |
-0.07 0.05% | 151.43 | 38.65 | 15.77 | 1.77 | 1.69 | 2.22 | 16.02 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 03,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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