On Tuesday, Cantor Fitzgerald maintained its Overweight rating on Archer Aviation Inc. (NYSE:ACHR) with a steady stock price target of $10.00. The firm highlighted Archer's significant order book, now valued at approximately $3.5 billion, which reflects up to 700 aircraft orders at an average selling price (ASP) of $5 million per aircraft.
The current order book includes commitments from United Airlines for 200 aircraft with an option for an additional 100, 200 from InterGlobe, and 100 from Air Chateau, with another 100 as an option.
Archer Aviation has also received around $2 million in payments from the U.S. Air Force as part of its approximately $142 million contract through the AFWERX Agility Prime program. The company is implementing a hybrid business model, planning to sell aircraft to operators and offer direct-to-consumer aerial ride-sharing services.
The company is now increasingly focusing on markets in the United Arab Emirates (UAE) and India. Archer Aviation sees the UAE as a potential early adopter of electric flying taxis. In India, the company has set its sights on launching services by 2026, pending regulatory approval.
A memorandum of understanding (MOU) with InterGlobe Enterprises aims to commercialize electric vertical takeoff and landing (eVTOL) aircraft for a route in Delhi, which would significantly reduce travel time compared to traditional car transportation.
Furthermore, the agreement with InterGlobe includes the financing of up to 200 FAA-conforming Archer aircraft. Both Archer Aviation and InterGlobe are exploring additional eVTOL applications in India, such as cargo, logistics, medical, emergency, private company, and charter services.
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