Archer Aviation gets Canaccord Buy with $13 target

Analysts weigh Archer's production progress and cash position against ongoing losses and regulatory hurdles after the latest quarterly results.

Canaccord backs Archer Aviation with $13 target

Archer Aviation reported a second quarter with an adjusted EBITDA loss and a notable cash outflow, while Canaccord reaffirmed a Buy rating and set a $13 price target. The stock traded around the low single digits and closed near $9.80 on the prior session. Canaccord analyst Austin Moeller pointed to steady production progress and a strong balance sheet, noting Archer has expanded output of its Midnight aircraft at California and Georgia sites despite the quarterly loss.

The firm’s financial position was bolstered by a $1.7 billion cash reserve strengthened through a capital raise, giving Archer room to pursue its growth plan. The company is moving toward the final stage of certification with the Federal Aviation Administration, a critical hurdle for the air taxi market. Investors are also watching potential early revenue from Launch Edition customer programs as a possible offset to ongoing cash burn. Eight analysts currently rate Archer as a Strong Buy with an average 12-month target near $12.06, suggesting upside from current levels, though the path remains dependent on execution and regulatory milestones.

Archer sits at the edge of a high-stakes industry, where progress in assembly lines and balance sheets may not yet translate into profits. The positive note from Canaccord emphasizes production gains and a stronger cash cushion, but the industry faces a long runway to sustained revenue and widespread regulatory approval. The tension between rapid growth and the cost of risk will define Archer's near term. If FAA certification slips or production milestones miss, investor sentiment could turn cautious even as some analysts stay constructive.

Highlights

The road to profitability will take more than bold promises and pretty numbers.