Archer Aviation: A High-Risk/Reward Play Driven By A Massive eVTOL Market Opportunity

Forward Analytics
43 Followers
(9min)

Summary

  • Archer Aviation is a high-risk, high-reward play, driven by a massive eVTOL market opportunity and strong investor optimism despite being pre-revenue.
  • The company's solid liquidity, operational milestones, and $6 billion order backlog provide a decent runway and future growth potential, though profitability remains distant.
  • The underappreciated defense partnership with Anduril offers near-term revenue potential and offsets commercial delays, enhancing Archer's long-term prospects.
  • Given high volatility, I recommend accumulating on dips near $9.3-$10 and holding for 12-18 months, while monitoring key catalysts and regulatory progress.

EVTOL Electric Vertical Take Off and Landing Aircraft Taking Off From Helipad

peepo

Setting The Stage

After reading a lot of articles on Archer Aviation Inc. (ACHR) some full of optimism and others overly cautious, one could be left to wonder: Is this company the next Tesla of the skies or

This article was written by

43 Followers
I'm a seasoned financial analyst with a passion for puzzling out the complexities of the financial world. As a former writer for Fade The Market on Seeking Alpha, I diligently worked to provide insightful analysis and well-researched articles on various investment opportunities. However, I am no longer involved in analyzing, submitting, or commenting on articles for Fade The Market. With a vast experience, I have honed my expertise in evaluating market trends, analyzing investment opportunities, and providing strategic recommendations to optimize financial portfolios.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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