Cantor Fitzgerald analyst Andres Sheppard reiterated an Overweight rating and $10.00 price target on Archer Aviation Inc. (NYSE: ACHR).

The analyst commented, "Archer's Order Book is Valued at Up to $3.5B, and Now Placing a Higher Emphasis on U.A.E and India Markets. In its 4Q23, ACHR disclosed that its aircraft order book is now valued at $3.5B, based on total orders of up to 700 aircraft, and at an ASP of $5M/aircraft. This order book comprises of 200 aircraft from United (UAL, NC) with an option to purchase an additional 100 aircraft, 200 aircraft from Interglobe (539448-IN, NC), and 100 aircraft from Air Chateau (private), with an option to purchase an additional 100 aircraft. The company also announced that it has now received payments totaling ~$2M from the U.S. Air Force, related to the company's ~$142M contract with the AFWERX Agility Prime program. Recall that ACHR plans to employ a hybrid business model, whereby it plans to sell aircraft directly to operators and also operate its aircraft in a direct-to-consumer aerial ride-share service. It is also important to mention that ACHR is now placing a higher degree of emphasis on the U.A.E market, as management believes this may be one of the first markets to adopt electric flying taxis, as well as India given its large TAM applications. Recall that ACHR announced on 11/9 that it had entered into an MOU with InterGlobe Enterprises (Private) with the goal of commercializing and entering into service in India in 2026 (following regulatory approval). Archer's target route here will be to fly a 27-km Delhi trip (from Connaught Place to Gurugram) in <15 minutes, which typically takes >60 minutes by car, depending on traffic. ACHR also disclosed that as part of this agreement, InterGlobe will finance the purchase of up to 200 of Archer's FAA-conforming aircraft. Lastly, both companies intend to also pursue additional use cases for eVTOLs in India, including but not limited to "cargo, logistics, medical, and emergency services," plus private company and charter services."

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Shares of Archer Aviation Inc. closed at $4.92 yesterday.