Archer Aviation's Stellantis Deal, Launch Program Strengthen Growth Prospects, FAA Certification Looms

Core Insights - Archer Aviation Inc reported a fourth-quarter loss of $1.42 per share, which was worse than the analyst estimate of a loss of$1.24 per share [1] - The company maintained its quarterly spending within the guided range, remaining close to flat for the second consecutive quarter [1] - Archer Aviation ended the period with $834.5 million in cash and equivalents [1] Analyst Ratings and Projections - JPMorgan analyst Bill Peterson maintained a Neutral rating on Archer Aviation with a price target of$9, citing uncertainty regarding the timing of FAA certification [2] - The Launch Edition program could help monetize aircraft before FAA certification in faster-moving jurisdictions, and the recent piloted flight is seen as a significant de-risking event [2][3] - Peterson expects cash burn to rise in 2025 to support certification, with potential offsets from customers and partners [3] Production and Deliveries - Archer is expected to produce approximately 10 aircraft from Covington this year, with more than half allocated for Launch deliveries and the remainder for the test fleet [4] - The U.S. Department of Defense's application for the hybrid VTOL opportunity is prioritized, with Agility Prime's role declining [4] Market Reaction - Following the earnings report, Archer Aviation's stock increased by 8.08%, reaching $8.56 [5] - Peterson projected a first-quarter loss of$0.21 per share, indicating ongoing challenges for the company [5]