Procure Space ETF Focuses on Space Investment with 80% Revenue from Space-Related Businesses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
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Source: Benzinga
- Unique Market Positioning: Since its launch in 2019, the Procure Space ETF (NASDAQ:UFO) has established itself as the only pure-play space ETF in the U.S., focusing on companies directly tied to the space industry, with increased attention expected in 2026 if a SpaceX IPO materializes.
- Clear Revenue Sources: Procure Holdings CEO Andrew Chanin stated that approximately 80% of the ETF's holdings derive their revenue from space-related businesses, a defining characteristic that distinguishes it from other space-themed ETFs and attracts investors seeking genuine space exposure.
- Competitor Analysis: Compared to the Ark Space & Defense Innovation ETF (BATS:ARKX) launched in 2021, which includes companies with weaker ties to space, Procure's ETF focuses more on space companies, showcasing its market differentiation strategy.
- Investor Demand: Chanin emphasized that investors looking to invest in space prefer actual space companies rather than those with only indirect connections, which provides strong support for the continued growth of the Procure ETF.
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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: 7.430
Low
8.00
Averages
12.40
High
18.00
Current: 7.430
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.
Generali Acquires New Stake in Archer Aviation
- New Investment Position: Generali Powszechne Towarzystwo Emerytalne initiated a new position in Archer Aviation during Q4 2025, acquiring 1 million shares valued at approximately $7.52 million, indicating confidence in the company's future prospects.
- Significant Holding Proportion: This investment represents 1.29% of Generali's reportable AUM, highlighting the fund's emphasis on Archer Aviation within its diversified portfolio, potentially reflecting optimism about its electric vertical takeoff and landing (eVTOL) market potential.
- Market Performance Analysis: As of January 26, 2026, Archer Aviation's stock was priced at $8.03, having declined 19.5% over the past year, underperforming the S&P 500 by 33 percentage points, raising concerns about its future profitability.
- Optimistic Industry Outlook: Archer Aviation's leadership in the electric air taxi sector, coupled with an expected 55% annual growth rate through 2030, may attract more investor interest, especially in light of its partnerships with major airlines and regulatory advancements.
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Archer Aviation: Patience Required for Future Growth
- Stock Volatility: Since going public in 2021, Archer Aviation's stock has declined from around $10 to the current $8.20, yet with $2 billion in cash, it demonstrates potential in the electric vertical takeoff and landing aircraft market despite not yet being operational.
- Future Revenue Expectations: Archer is expected to start generating revenue in Q1 2026, with analysts projecting approximately $32 million for the full year, indicating a crucial step towards profitability, albeit a modest figure.
- Market Opportunities: Archer's Midnight aircraft passed flight tests in Abu Dhabi, with the UAE expected to approve air taxis for commercial operations in Q3 2026, presenting significant market opportunities for the company.
- Strategic Investment: Archer's acquisition of Hawthorne Airport for $126 million will serve as a hub for its air taxi operations, preparing for the 2028 LA Olympics and enhancing its competitive position in the U.S. market.
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