Archer Aviation Inc. (ACHR) shares surged 5.25% in intraday trading on Wednesday, fueled by analysts' optimism over the company's expansion into the military market. The electric aircraft maker rallied after Cantor Fitzgerald raised its price target to $13, citing Archer's partnership with defense tech firm Anduril Industries to develop hybrid aircraft for potential Pentagon orders.

Analysts highlighted that Archer Aviation recently raised $430 million in fresh capital and announced plans to leverage its electric vertical takeoff and landing (eVTOL) technology for dual-use military applications. The brokerage expects the company to continue prioritizing its core urban air mobility business while tapping into the lucrative defense sector.

The bullish analyst move reflects growing investor confidence in Archer Aviation's diversification strategy and its prospects in the emerging eVTOL and hybrid aircraft markets. With eight out of nine brokerages rating the stock a "buy" and a median price target of $11, the company's shares have soared 48% year-to-date, outperforming the broader market.