Shares of Archer Aviation (ACHR) are down 11% at the time of writing after the eVTOL aircraft maker announced plans to double its available common stock and adjust board membership and ownership rules. In a December 20 special shareholder meeting, investors approved increasing the company’s authorized Class A common stock from 700 million to 1.4 billion shares, according to a regulatory filing. They also greenlit the issuance of Class A shares to Stellantis (STLA) under an August agreement.
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Additionally, shareholders approved restrictions on voting, ownership, and control by non-U.S. citizens to comply with federal law, along with limits on foreign ownership.
Canaccord Genuity Sees Strong Growth Potential
Separately, Archer Aviation recently received a Buy rating from Canaccord Genuity analyst Austin Moeller, who set a price target of $11. Moeller highlighted the company’s strong growth potential, which includes the completion of its advanced manufacturing facility in Georgia. This plant is set to start production in early 2025 and will aim for 650 eVTOL aircraft annually by 2030, with a long-term goal of producing 2,300 units per year.
Additionally, Archer’s collaboration with Anduril to develop hybrid-VTOL drones for the U.S. military opens new growth opportunities that could speed up production for military applications. This would complement Archer’s passenger eVTOL ambitions and strengthen its dual-market strategy.
It’s worth noting that Moeller is a five-star analyst who has enjoyed an 83% success rate on ACHR stock, with an average return of 116.5% per rating.
Is ACHR a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ACHR stock based on six Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 71% rally in its share price over the past year, the average ACHR price target of $11.29 per share implies 13.1% upside potential.
