Archer Aviation’s Wisk Acquisition Seen as Transformational by Analyst

Archer Aviation Inc. (NYSE:ACHR) shares are trading lower on Tuesday after the company reported mixed third-quarter results on Monday, beating revenue estimates but posting a wider-than-expected loss.

Revenue came in at $5.10 million, beating the $3.57 million analyst estimate, while its loss of 35 cents per share was wider than the expected loss of 34 cents.

Management expects the Boeing Wisk, Insitu and SkyGrid acquisition to close well before year-end, with only one of nearly 20 required approvals remaining. The company also guided for fourth-quarter revenue of $5 million to $6 million.

Analysts revised their price targets following the earnings announcement.

• Archer Aviation stock is showing weakness. What’s driving ACHR stock lower?

Analyst View

Cantor Fitzgerald analyst Andres Sheppard reiterated an Overweight rating on Archer Aviation but lowered his price target to $10 from $11.

Sheppard views the planned acquisition of Boeing subsidiaries Wisk Aero, Insitu and SkyGrid as transformational, potentially adding more than $200 million in annual revenue after closing. Management now expects the transaction to close earlier than its previous end-2026 target.

Aircraft Development and Certification Progress

Archer’s dual-use VTOL platform, developed with Anduril, includes Thunder for defense and Halo for commercial applications. Thunder’s first flights are targeted for 2027, and testing of its turboshaft engine has begun, notes the analyst.

The company is also building nine Midnight aircraft and multiple Halo aircraft, according to the analyst.

Archer’s Midnight CTOL aircraft received the FAA’s Market Survey Special Airworthiness Certificate, enabling piloted operations in Los Angeles. The company expects its first piloted transition flight by year-end.

Commercial Expansion and Partnerships

Archer announced three Texas air taxi routes and a partnership with ITA Airways to expand into Italy.

Cantor remains confident in Archer’s commercialization and FAA certification plans, with the analyst highlighting the company’s aircraft development and expanding commercial partnerships.

Needham analyst Chris Pierce maintained a Buy rating on Archer Aviation but lowered his price target to $7 following the third-quarter results.

Pierce cited positive FAA market-survey operations for conventional takeoff and landing (CTOL) aircraft, an upcoming piloted vertical takeoff and landing (VTOL) transition flight and the potential opportunity surrounding the 2028 LA Olympics as catalysts for upside.

However, the analyst lowered near-term estimates due to slower technical progress with the FAA and higher expected cash requirements. Pierce believes Archer is positioned to narrow its execution and valuation gap with peers.

ACHR Stock Price Activity: Archer Aviation shares were down 3.12% at $4.66 at the time of publication on Tuesday.

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