Archer Aviation shares jumped over 16% this week after announcing a strategic partnership with Palantir Technologies. The collaboration aims to develop AI-driven software solutions for critical aviation systems, such as air traffic control and route planning.
The partnership is part of Archer’s broader strategy to capitalize on trends reshaping the aviation industry. The company plans to deliver its first commercial aircraft, the Midnight, later this year and has an indicative order book exceeding $6 billion. Archer boasts strong demand for its aircraft, with commitments from major carriers like United Airlines and Interglobe.
The partnership with Palantir is seen as a positive move to mitigate business risks. With an order book encompassing commitments from several key customers, Archer’s average selling price is projected to be higher than earlier estimates of $5 million. The company also maintains a strong financial position, with over $1 billion in liquidity and flat spending.
Analysts remain bullish on the company’s prospects, with Cantor Fitzgerald analyst Andres Sheppard reiterating an “Overweight” rating while maintaining a price target of $13.00. Archer is rated a Strong Buy overall, based on recent recommendations from seven analysts, with an average price target of $12.83 representing a potential upside of 62.41% from current levels.
Source: https://www.tipranks.com/news/archer-aviations-achr-shares-surge-after-strategic-leap-with-palantir