Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 18 Aug, 25 | ACHR | Buy | USD 9.82 | USD 10.45 | USD 11.0 | 14 days | Closed |
12.63%
|
*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.
Revenue Pipeline Progress: Initial commercial payments from the UAE program are expected in FY25, marking a transition toward monetization of aircraft operations
Cash Strength: Cash and equivalents surged from USD 360.4 million in Q2 FY24 to USD 1,724.0 million in Q2 FY25, driven by the USD 850 million capital raise
Operating Expenses Growth: GAAP operating expenses rose from USD 121.2 million in Q2 FY24 to USD 176.1 million in Q2 FY25, reflecting a USD 54.9 million increase in development and scale-up costs
Net Loss Expansion: Net loss increased from USD 106.9 million in Q2 FY24 to USD 206.0 million in Q2 FY25, a deterioration of USD 99.1 million
Archer faces significant investment risk from its ability to achieve FAA certification, scale manufacturing, and commercialize its eVTOL aircraft before cash burn outpaces capital reserves, given widening losses and rising operating expenses
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 9.82 | 8.98 | 10.45 | 11.0 |
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.
Strengthened Financial Position: Archer Aviation reinforced its financial standing in Q2 FY25 by completing an USD 850 million capital raise, pushing its cash and equivalents to USD 1.72 billion, the highest in its history. This strong liquidity provides resilience and supports simultaneous investments in both commercial air taxi operations and defense initiatives.
Controlled Spending within Guidance: The company’s operating expenses reached USD 176.1 million in Q2 FY25, remaining within its projected range. These expenditures were directed toward research, development, certification, and production of the Midnight aircraft, alongside investments in go-to-market strategies and operational readiness.
Strategic Partnerships and Global Expansion: Archer secured a milestone partnership as the official air taxi provider for the Los Angeles 2028 Olympics, aligning federal and local stakeholders toward early U.S. eVTOL deployment. Internationally, Archer commenced its UAE Launch Edition program with Abu Dhabi Aviation and the Abu Dhabi Investment Office, including delivery of its first Midnight aircraft and initiation of flight testing.
Advancements in Manufacturing Capabilities: The company scaled up production, with six Midnight aircraft under construction—three in final assembly—across facilities in Silicon Valley and Georgia. Archer also advanced toward obtaining its FAA production certificate, supported by inspections of its manufacturing operations.
Defense Program Acceleration: Archer expanded its defense business by acquiring critical intellectual property, key talent from Overair, and specialized composite manufacturing assets from Mission Critical Composites. These acquisitions strengthen the company’s capabilities in prototyping and accelerate market entry, amid growing global demand for autonomous defense systems.
Financial Performance Challenges: Despite operational progress, Archer reported a Q2 FY25 net loss of USD 206.0 million, widening from USD 106.9 million in Q2 FY24. Adjusted EBITDA loss also increased to USD 118.7 million compared to USD 93.8 million in the prior year. The rise in losses was primarily attributed to higher operating expenses and non-cash changes in warrant liabilities.
Forward Outlook: Looking ahead, Archer anticipates Q3 FY25 Adjusted EBITDA losses between USD 110 million and USD 130 million, reflecting ongoing investments in aircraft development, manufacturing ramp-up, and certification milestones. Management emphasizes that these expenditures are foundational to achieving long-term commercialization and scaling opportunities.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Archer Aviation, Inc. (NYSE: ACHR) at its current market price of USD 9.82 as of Aug 18, 2025 (12:40 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 |
-0.2901 3.65% | 7.66 | - | - | - | 9.46 | -0.3861 | |
| BA The Boeing Company |
1.19 0.58% | 207.90 | - | 294.12 | 1.68 | - | 2.25 | 111.56 |
| EADSY Airbus Group NV |
-0.99 1.74% | 55.89 | 27.76 | 21.51 | 1.93 | 7.21 | 1.79 | 13.93 |
| EADSF Airbus Group SE |
-2.0 0.89% | 224.00 | 27.24 | 21.28 | 1.91 | 7.14 | 1.79 | 13.93 |
| RTX Raytheon Technologies Corp |
-2.715 1.51% | 177.22 | 38.65 | 15.77 | 1.77 | 1.69 | 2.22 | 16.02 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is 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.
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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