Archer Aviation Q2 Disappoints: First Revenue Stream In Sight?

Shares of Archer Aviation Inc (NYSE:ACHR) recorded gains in trading on Tuesday, despite a downbeat second-quarter report.

Here are some key analyst takeaways.

• JPMorgan analyst Bill Peterson reiterated a Neutral rating and price target of $10.
• Needham analyst Chris Pierce reaffirmed a Buy rating and price target of $13.
• HC Wainwright analyst Amit Dayal maintained a Buy rating and price target of $18.

Check out other analyst stock ratings.

JPMorgan: Archer's second-quarter results highlighted ongoing uncertainties about the timing of certification. The team is focused on meeting FAA requirements and preparing for “future commercial and defense opportunities," Peterson said. The company expects to add six more Midnight aircraft to its fleet, bringing the total to eight.  

Archer failed to achieve any sequential percentage increase in FAA acceptance of compliance verification documents. This may disappoint some investors. However, it “reflects a lumpy process with a handful of policy items still outstanding that are not all Archer-specific," the analyst added.

Needham: Archer Aviation's UAE program has advanced from planning to flight testing, Pierce said. The company delivered its first Midnight aircraft to Abu Dhabi. The company expects to receive initial commercial payments later this year as it unlocks milestones.

This would be the first tangible revenue stream for Archer Aviation, the analyst stated. "A White House-backed pilot program creates a credible path for US testing as early as 2026," he further wrote.

HC Wainwright: Archer Aviation generated zero revenues in the second quarter, Dayal said. Adjusted EBITDA loss widened sequentially to $119 million, from $109 million in the previous quarter, he added.  

The company reported a net loss of 36 cents per share, versus 17 cents per share in the prior quarter, the analyst stated. "We believe management continues to largely execute against the targeted milestones established to meet initial commercialization goals during 2026," he further wrote.

ACHR Price Action: Shares of Archer Aviation had risen by over 4.5% to $9.96 at the time of publication on Tuesday.

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