Archer Aviation initiated with a Buy at Needham

Needham analyst Chris Pierce initiated coverage of Archer Aviation (ACHR) with a Buy rating and $11 price target The cadence of aircraft deliveries and air taxi network operation is uncertain, but industry momentum “has left the hangar,” the analyst tells investors in a research note. The firm says it has higher confidence in Archer executing against its $6B aircraft order book post the recently introduced modeling guardrails. It sees a $3B-plus early stage air taxi revenue opportunity for the company, driven by a “conservative” share of airport and commute travel, backed by a “compelling use case” given shorter trip times versus currently available, higher end airport travel options. Archer is a “long duration story, but shorter-term catalysts (regulatory approvals, first passenger flights) should drive increased confidence in the longer-term opportunity,” contends Needham.