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Trump's Order Lifts Archer Aviation Stock: More Upside Ahead?
ZACKSยท 2025-06-11 15:11
Group 1 - U.S. President Donald Trump's executive order on June 6, 2025, aims to enhance U.S. leadership in unmanned aircraft systems, particularly electric Vertical Takeoff and Landing (eVTOL) aircraft [1][7] - Archer Aviation Inc. (ACHR) experienced an 11.7% increase in share price following the announcement, significantly outperforming the industry's 0.4% return [1][7] - The eVTOL industry is gaining momentum due to urban congestion, the demand for sustainable transport, and advancements in electric aviation technology [3] Group 2 - Archer Aviation is advancing its Midnight eVTOL aircraft through FAA certification and has initiated the next phase of flight testing, demonstrating both vertical and conventional takeoff capabilities [4][7] - The executive order is expected to facilitate regulatory processes and accelerate the adoption of eVTOL aircraft, benefiting Archer's commercialization efforts [4] - Other eVTOL companies, such as Joby Aviation Inc. and Vertical Aerospace, have also seen significant share price increases following the executive order, with Joby rising 16.3% and Vertical Aerospace increasing 7.2% [9] Group 3 - Archer Aviation's current trading price is 6.6% below the average Zacks price target, indicating potential upside [5] - The company is trading at a trailing 12-month price-to-book (P/B) multiple of 6.18X, which is approximately 4% higher than the industry average of 5.94X [12] - The Zacks Consensus Estimate for Archer's losses for 2025 and 2026 has improved over the past 60 days, reflecting a positive trend in earnings revisions [13]