Goldman Sachs Starts Archer Aviation Inc. (ACHR ) at Neutral

Goldman Sachs analyst Anthony Valentini initiates coverage on Archer Aviation Inc. (NYSE: ACHR ) with a Neutral rating and a price target of $11.00.

The analyst comments: "ACHR has quickly closed the gap with JOBY in its attempt to certify its Midnight aircraft by outsourcing 80% of the parts to aerospace suppliers with certification heritage. This strategy has driven lower R&D spend and time to build an operational aircraft, but sacrifices the higher margin aftermarket opportunity in the medium-term. Based on takeoff weight and payload, ACHR's aircraft may prove to be the most capable, and we like that the company is moving away from the aircraft operator model, as we believe this will be the most regulatory and capital intensive piece of the value chain. We see ACHR's defense business as having the most upside given its partnership with Anduril, but it is in its infancy, there are currently no programs of record from the DoD, and it is difficult to underwrite. We believe the stock is undervalued relative to competitors, but prefer more aftermarket rich business models."

For an analyst ratings summary and ratings history on Archer Aviation Inc. click here. For more ratings news on Archer Aviation Inc. click here.

Shares of Archer Aviation Inc. closed at $7.79 yesterday.

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