NEW YORK - Deutsche Bank has reaffirmed its confidence in Archer Aviation, maintaining its top pick status for the company with a price target of $12 per share, anticipating a significant 140% rise from last Friday's close. including the successful flight of its Midnight aircraft and a strong cash position, as indicators of the company's promising future.
The electric vertical takeoff and landing (eVTOL) vehicle manufacturer has seen its stock soar by roughly 170% year-to-date, as it gears up to introduce commercial urban taxi flights by 2025. The company's financial health is underpinned by support from the US Air Force and customer deposits, providing it with an operational runway for the next two years.
In parallel with these developments, Archer Aviation announced today that it is selling up to $70 million of its common stock. The sale is being orchestrated by Cantor Fitzgerald and aims to raise funds for various corporate needs, including the research and development of the Midnight eVTOL aircraft. Following this announcement, there was a slight dip in the company's stock value.
Archer Aviation has also been expanding its global footprint. On October 16, it disclosed plans to launch an air taxi service in the United Arab Emirates by 2026, with financial backing from the UAE government. This venture represents Archer's first foray into an international market.
Further bolstering its position, automotive giant Stellantis (NYSE:STLA) increased its investment in Archer on October 18. The company acquired an additional 12.3 million shares at $5.58 each, bringing its total stake to 31 million shares. Stellantis is not only investing financially but also contributing manpower to the construction of Archer's eVTOL manufacturing facility in Covington, Georgia.
Archer Aviation's strategic partnerships and funding initiatives are positioning it as a leader in the emerging eVTOL market, which promises to revolutionize urban transportation in the coming years.
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