Archer Aviation (ACHR) Falls This Much Following 2 Analyst Ratings

Archer Aviation Inc. (NYSE:ACHR) is one of the 10 Stocks Underperforming the Broader Market.

Archer Aviation fell by 10.91 percent on Thursday to close at $4.33 apiece as investor sentiment was dampened by a series of price target cuts from analysts following the results of its third-quarter earnings performance.

In separate market notes earlier in the week, Needham and Deutsche Bank both reduced their price targets for Archer Aviation Inc. to $7 and $10, respectively, from $9 and $12, despite maintaining a buy recommendation.

Photo by Alesia Kozik on Pexels

Needham, for its part, said that the reduction was based on a flatter early trajectory given the minimal technical progress with the Federal Aviation Administration, which is expected to modestly increase cash needs.

In the third quarter of the year, Archer Aviation Inc. widened its net loss by 111.4 percent to $274.6 million from $129.9 million in the same period last year. It also raked in revenues of $5.1 million, versus none in the comparable period.

In other news, the listed aviation firm announced a multi-year partnership with Formula 1 for the potential integration of eVTOL air taxi services at Grand Prix events with the goal of flying VIPs and fans to and from Grand Prix circuits in minutes aboard its Midnight aircraft.

The partnership will explore opportunities such as dedicated air taxi drop-off and pick-up locations at circuits and the inclusion of air taxi services as part of Formula 1’s hospitality and ticketing offerings.

Archer Aviation Inc. said that the initiative forms part of their goal to provide an alternative mode of transportation by skipping traffic between major airports, business hubs, and other key destinations to and from Grand Prix events.

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