JAL-Sumitomo JV secures right to place order for up to 100 Archer air-taxis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2024
0mins
Source: Reuters
Joint Venture Orders Electric Air-Taxis: Archer Aviation announced a joint venture with Japan Airlines and Sumitomo Corp has secured the right to order up to 100 electric air-taxis, valued at $500 million, which could boost Archer's market presence despite ongoing industry challenges.
Industry Challenges and Developments: The air-taxi sector faces significant hurdles including funding, technology, and regulatory issues, as highlighted by Lilium's recent insolvency; Archer is developing its 'Midnight' aircraft for short-distance urban travel, with operations planned in various Japanese cities pending certification.
Analyst Views on ACHR
Wall Street analysts forecast ACHR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACHR is 12.40 USD with a low forecast of 8.00 USD and a high forecast of 18.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 9.010
Low
8.00
Averages
12.40
High
18.00
Current: 9.010
Low
8.00
Averages
12.40
High
18.00
About ACHR
Archer Aviation Inc. 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 defense 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. Its defense line of business consists of the sale of aircraft and related technologies for defense applications. Its initial product is intended to be a hybrid-propulsion, vertical take-off and landing (VTOL) aircraft. Its Midnight aircraft is designed around its proprietary 12-tilt-6 distributed electric propulsion platform. It carries four passengers plus a pilot. The aircraft is purpose-built for air taxi operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
