Archer Aviation (ACHR) The Motley Fool·2025-01-10 17:41Stock Performance - Archer Aviation's stock price increased by 58.8% in 2024, driven by strong bullish momentum [2] - The stock saw a significant pullback in early 2025, with a year-to-date decline of 5.4% [8] - Despite initial gains in 2025, the stock experienced sell-offs following J.P. Morgan's downgrade from overweight to neutral [9] Business Developments - Archer Aviation conducted test flights and issued business updates, moving closer to regulatory approvals for its Midnight flying vehicles [3] - The company's Georgia production plant is scheduled to begin producing Midnight craft at the beginning of 2025, with plans to scale production throughout the year [4] - Archer Aviation partnered with Anduril to produce hybrid propulsion VTOL aircraft, aiming to secure U.S. government defense contracts [5] Analyst Coverage - Deutsche Bank raised its one-year price target on Archer Aviation stock from 15, implying a potential upside of 63% [7] - J.P. Morgan increased its one-year price target from 9 but downgraded the stock to neutral, suggesting a downside of roughly 3.5% [9] - Analysts highlighted risks related to regulatory approval for Midnight craft, despite the stock's long-term potential [10] Regulatory and Political Factors - The incoming Trump administration is expected to create a more lax regulatory climate, potentially aiding Archer Aviation in receiving FAA approval for commercial operations [6] - CEO Adam Goldstein expects commercial flights to begin in 2025, indicating confidence in regulatory approval in at least one key geographic territory [4]