Archer Aviation Secures Tokyo Deal as Stock Dips Before Earnings
Archer Aviation recently announced a significant partnership with the Tokyo Metropolitan Government, in conjunction with Japan Airlines and Sumitomo Corporation. This collaboration is part of the first phase of Tokyo’s “eVTOL Implementation Project,” which aims to prepare the city for electric air taxi services.
Stock Performance Ahead of Earnings Report
Despite this promising announcement, Archer Aviation’s stock faced a decline this week. The shares fell by 8.25% on Tuesday, reaching a price of $9.56, following a 7.1% decrease on the previous day. This stock pullback comes just days before the company’s earnings report set for November 6, where analysts predict a per-share loss of $0.30.
Tokyo Partnership Details
The partnership with the Tokyo Metropolitan Government includes Archer, Japan Airlines, Sumitomo Corporation, and their joint venture, Soracle. The project aims to develop an essential infrastructure for air taxi services using Archer’s Midnight aircraft for initial test flights. The first phase will see trial routes being run over Tokyo Bay and surrounding rivers, establishing a foundation for full-scale operations anticipated later in this decade.
Future Revenue and Flight Plans
In a recent interview, Archer CEO Adam Goldstein outlined the company’s vision for future operations. Archer is expected to start recognizing revenue in early 2026 as it transitions from research into operational phases. Although initial sales may be modest, consistent growth is anticipated. Full-scale passenger flights are targeted for 2028, contingent upon successful certification and the development of a necessary support network.
- Test flights for the Midnight aircraft are projected to commence in mid-2026.
- Five launch cities will be announced soon, targeting both U.S. and international markets.
- Discussions with the Federal Aviation Administration are ongoing, although progress may be affected by the government shutdown.
- Archer is also collaborating with international partners, including the United Arab Emirates, to accelerate its commercial launch.
Market Outlook for Archer Aviation
Investors are keenly awaiting the upcoming earnings report for insights on the company’s advancements. While Archer continues to operate at a loss, analysts maintain a “Strong Buy” consensus, highlighting the firm’s expanding partnerships and manufacturing developments. Despite the recent stock downturn, Archer’s shares have surged over 190% in the past year, driven by heightened interest in electric vertical takeoff and landing technology.
Analyst Ratings and Future Expectations
Wall Street analysts display optimism regarding Archer Aviation’s trajectory. The company currently holds a “Strong Buy” rating based on six recent evaluations, with an average 12-month price target of $13.67. This target indicates a potential upside of approximately 42.99% from its current share price.
