Is ACHR's 2025 EPS forecast achievable?
4/12/2025 07:15pm
**Archer Aviation's (ACHR) 2025 EPS forecast of $12.5 appears achievable** based on the following points:
1. **Strategic Partnerships and Market Potential**: Archer is forming significant partnerships, such as with Stellantis and United Airlines, which are expected to enhance its manufacturing capabilities and market reach. These alliances could lead to increased demand for its eVTOL aircraft, potentially boosting revenue and profitability.
2. **Average Analyst Price Target and Consensus Rating**: The average analyst price target for ACHR is $11.69, with a "Strong Buy" consensus rating. This suggests that analysts are optimistic about ACHR's future performance, which includes EPS growth.
3. **Technological Advancements and Production Milestones**: Archer has made substantial progress in developing its eVTOL aircraft, with the Midnight aircraft nearing reality. The company's "Launch Edition" program is a strategic move to commercialize its aircraft, which could lead to revenue generation and a reduction in EPS dilution as the company moves towards profitability.
4. **Financial Position and Liquidity**: Archer has a strong cash position, with $834.5 million in cash reserves. This liquidity, combined with recent capital raises, positions the company well for future growth opportunities and supports its ability to achieve its EPS forecast.
5. **Historical Performance and Earnings Surprises**: Archer has delivered earnings surprises in the past, with an average surprise of 7.73% in the trailing four quarters. This track record, along with the company's strategic initiatives, supports the achievability of its EPS forecast.
In conclusion, while there are challenges, such as regulatory hurdles and potential manufacturing delays, the overall positive outlook for ACHR, including its strategic partnerships, technological advancements, and financial position, support the achievability of its 2025 EPS forecast.