Zacks Rank #2 (Buy) company Archer Aviation (ACHR) is a leading developer of advanced aviation technologies with a focus on electric vertical takeoff and landing (eVTOL). Midnight, its lead platform, is an eVTOL aircraft designed for air-taxi operations and related services. Archer Aviation’s Mission eVTOL is a piloted, four-passenger hybrid-electric vehicle designed for short, frequent flights. The company’s mission is to offer its customers an alternative to being stuck in traffic in highly populated areas like New York City. In addition to its air taxi business, Archer is expanding into the defense industry.
Boeing Deal is a Major Catalyst for Archer Aviation
On August 10th, Boeing (BA) and Archer announced a strategic partnership. As part of the deal, Archer will acquire Wisk Aero (an eVTOL developer), Insitu (an autonomous drone systems company), and SkyGrid (an air traffic management routing software) from Boeing in exchange for a 19.75% equity stake in ACHR. In addition to expanding its business and acquiring potential competition, ACHR will immediately gain $200 million in annual revenue from Insitu.
Archer Aviation: Powerful Partnerships
Thanks to key partnerships, Archer Aviation is well-positioned to break into the defense industry. Archer is advancing a dual-use, hybrid, and autonomous VTOL with defense leader Anduril. The company is also building a top-tier AI and connectivity stack with partners including Palantir (PLTR),NVIDIA (NVDA), and SpaceX’s (SPCX) Starlink.
Regulatory Pathway
Although Archer’s air taxi business is not yet live, the company is ahead of its competitors on the regulatory front. It became the first provider to pass phase 3 of the FAA’s 4-phase certification process, conducting numerous test flights through the Trump Administration’s eVTOL Integration Pilot Program. Currently, Archer is on track to begin early commercial operations later this year. Archer has already secured a deal with United Airlines (UAL) to order up to $1 billion in aircraft to serve airline connections. Additionally, Archer has been selected as the official air taxi provider for the 2028 Olympic Games in Los Angeles.
ACHR: Potential Trend Change
ACHR shares are attempting to close over the 200-day moving average for the first time this year. If successful, a close above the 200-day moving average would signal a bullish trend change.
Image Source: TradingView
Bottom Line
With its regulatory lead, strategic partnerships, and best-in-breed technology, Archer Aviation is positioned to be a leader in the burgeoning air taxi industry.
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