Archer Aviation (ACHR) Underperformance Unwarranted - Deutsche Bank

September 28, 2022 7:52 AM EDT
Get Alerts ACHR Hot Sheet
Price: $2.96 -1%

Rating Summary:
    4 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 16 | New: 24
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Deutsche Bank analyst Edison Yu reiterated a Buy rating and $12.00 price target on Archer Aviation Inc. (NYSE: ACHR), saying the underperformance is unwarranted.

The analyst commented, "Archer has been the worst performing stock among eVTOL names we track (4 others are EVEX, EVTL, JOBY, and LILM) since coming back from Labor Day. We believe this to be unwarranted given the company's operational progress and strong cash position. Fundamentally, we attribute the main cause to Archer's airline partner United partnering up with competitor Eve which we think may be getting misunderstood by the market. Separately, there are tactical reasons for the underperformance, notably around Vertical (EVTL) and Eve (EVEX) having very small share floats which make them nearly impossible to short (i.e., super high cost of borrowing) and easy to squeeze. Looking ahead, we continue to believe Archer will be one of the first companies to certify an eVTOL in the US with United continuing to be a large supporter and is on track to hit its key operating benchmarks."

For an analyst ratings summary and ratings history on Archer Aviation Inc. click here. For more ratings news on Archer Aviation Inc. click here.

Shares of Archer Aviation Inc. closed at $2.78 yesterday.

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