Archer Aviation (US:ACHR) ZACKS·2025-03-18 16:26Core Insights - Archer Aviation Inc. has entered a partnership with Palantir Technologies Inc. to enhance its aircraft manufacturing capabilities using artificial intelligence, which is expected to strengthen its position in the aviation industry [1][2] Company Performance - Archer Aviation's shares have increased by 0.7% over the past year, outperforming the Zacks Aerospace-Defense industry's decline of 5% and the broader Zacks Aerospace sector's gain of 3.1%, while also lagging behind the S&P 500's return of 10.1% [4] - The company has made significant progress in launching its Midnight aircraft, including the completion of a high-volume manufacturing facility in Georgia, with production expected to ramp up to two aircraft per month by the end of 2025 [6][8] Market Opportunities - The demand for sustainable and low-carbon emission transport solutions is rising due to increasing urban traffic congestion, which is expected to boost the market for electric vertical take-off and landing (eVTOL) aircraft like Midnight, projected to grow at a CAGR of 55% from 2025 to 2034 [11] - Once Archer Aviation begins delivering its eVTOL aircraft, it is anticipated to generate notable revenues and achieve bottom-line growth [12] Earnings Estimates - The Zacks Consensus Estimate for Archer Aviation's first-quarter and full-year 2025 earnings indicates a year-over-year improvement, although there has been a downward revision in estimates, reflecting declining investor confidence [13][14]