Archer Aviation Inc

Archer Aviation Inc. (NYSE: ACHR) is an aerospace company. It is engaged in providing customers with advanced aircraft and related technologies and services in the United States and internationally in both the commercial and defence sectors. Its commercial line of business consists of the sale of its commercial aircraft (Archer Direct), such as Midnight, to aircraft operators as well as technologies and services related thereto, including commercial launch (certification, testing, training, demonstration, market survey and early trial operations), and maintenance and repair.

Recent Business and Financial Updates

• Q1 2025 Key Achievements: Archer Aviation Inc. achieved a notable advancement by affirming that its UAE rollout is progressing as planned, including the anticipated shipment of a manned Midnight aircraft to the area during the upcoming summer period. This progress is bolstered by the recent endorsement of Abu Dhabi's inaugural hybrid heliport blueprint, which bolsters the firm's international development objectives.
• Key Alliances and Initiatives: Archer unveiled its "Launch Edition" initiative as a crucial element in its market entry plan, successfully onboarding initial clients such as Abu Dhabi Aviation and Ethiopian Airlines. This program provides a systematic framework for introducing the Midnight aircraft in pioneering regions. Moreover, the company has forged a collaborative agreement with Palantir to create AI-enhanced tools for advanced aviation applications, targeting improvements across multiple systems. In partnership with United Airlines, Archer also organized a gathering in New York City recently to detail proposals for an urban air mobility system linking Manhattan to adjacent airfields, which could shorten journey durations from 60-120 minutes to just 5-15 minutes.
• Fiscal Results and Projections: In the initial quarter, Archer bolstered its liquidity with cash holdings surpassing USD 1 billion, establishing it as an industry frontrunner, while adhering to its forecasted expenditure levels for Q1 2025. The firm disclosed GAAP operating costs totaling USD 144.0 million and a net deficit of USD 93.4 million, alongside a non-GAAP adjusted EBITDA shortfall of USD 109.0 million. For the forthcoming second quarter of 2025, Archer anticipates an adjusted EBITDA deficit ranging from USD 100 million to USD 120 million.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 48.23, currently near mid-levels, with expectations of a consolidation or a upward correction if the important support of USD 8.50-USD 9.00 holds. Additionally, the stock's current positioning is between both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance and support levels respectively.

Archer Aviation Inc. (ACHR) emerges as a frontrunner in the urban air mobility sector, bolstered by its Q1 2025 milestones that affirm on-track UAE commercialization, including the imminent delivery of a piloted Midnight aircraft this summer and the approval of Abu Dhabi's pioneering hybrid heliport, solidifying its global expansion strategy. The rollout of the "Launch Edition" program has secured inaugural clients like Abu Dhabi Aviation and Ethiopian Airlines, establishing a clear pathway for early market adoption of its innovative eVTOL technology. Strategic alliances, such as the AI-focused collaboration with Palantir to advance aviation systems and the joint initiative with United Airlines to create a transformative New York City air taxi network—slashing commute times from hours to mere minutes—underscore Archer's technological edge and revenue potential. With a robust cash position exceeding USD 1 billion, controlled Q1 operating expenses of USD 144.0 million, and a projected Q2 adjusted EBITDA loss of USD 100-120 million, Archer is financially primed to lead the eVTOL revolution, offering fundamental decent opportunity in the burgeoning sustainable aviation market. 

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 the closing market price of USD 10.25, as of August 12, 2025.

 Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

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. 

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 level is August 12, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.