The Golden Lounge

[Theo]

$ACHR News: Cathie Wood Pours Millions Into These 2 Stocks, Analysts Say They Have Strong Upside Potential — Here’s Why You Should Pay Attention

"...
...In fact, Wood is not alone in thinking these are worthwhile additions to a portfolio. According to the TipRanks database, certain Street analysts see big gains ahead for the pair. Let’s see why investors should pay attention here.

Archer Aviation (ACHR)

Speaking of disruptive innovation, let’s delve into the realm of urban air mobility. Archer Aviation is an innovative electric vertical takeoff and landing (eVTOL) aircraft manufacturer and technology company. Archer is a key player in the emerging urban air mobility (UAM) industry, with a mission to revolutionize urban transportation by developing sustainable and efficient electric aircraft designed for short-distance, urban air travel.

It’s still early days for this pre-revenue firm, but Archer has some big backers behind it and recently obtained a $215 million investment from a consortium that featured Stellantis, Boeing, and United Airlines.

The backlog for its eVTOL vehicle, Midnight, includes U.S. airlines United and Mesa, both of which are considered strategic partners, and so is Stellantis, the auto giant responsible for being the exclusive contract manufacturer for the mass production of Midnight. Archer has set its sights on achieving certification in 2024 and launching commercial operations the following year.

More in the here and now, earlier this month, the company announced that the U.S. Air Force had delivered the company’s initial payment, totaling nearly $1 million for a mobile flight simulator. It amounts to the first payment of the recently disclosed contracts that have a value of up to $142 million.

The stock has been one of the year’s biggest success stories, even after a recent pullback, delivering year-to-date gains of 180%. Meanwhile, Wood has been loading up. She bought 6,005,798 shares over the past 2 months via her ARKK, ARKQ, and ARKX ETFs. These ETFs now hold 15,798,848 shares combined, which currently command a market value of more than $82 million.

While there are plenty of unknowns ahead for this disruptor, Raymond James analyst Savanthi Syth thinks the company offers a unique value proposition.

“Archer continue[s] to lead on certification among companies under coverage, albeit FAA timelines are far from certain, and the industry continues to move forward with certification-conforming aircraft coming in 2024 (with pilot-on-board flights likely at Archer and Joby in 1H24), which we believe should build momentum in sentiment among investors and the public,” Syth explained. “While we are generally constructive on the prospects and opportunity for the group, ACHR stands out as particularly compelling at current valuation combined with the progress to date and a balanced approach to commercialization.”

These comments underpin Syth’s Outperform (i.e., Buy) rating while her $9 price target implies shares will gain 71% over the coming year. (To watch Syth’s track record, click here)

Overall, the bulls are definitely running for ACHR, as the stock’s Strong Buy consensus rating shows – it is backed up by 4 unanimously positive analyst reviews. The shares are trading for $5.21 and the $9.5 average price target suggests a one-year upside potential of ~81%."