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For anyone considering Archer Aviation, the essential thesis centers on belief in the company’s urban air mobility vision and confidence in its ability to move from testing to commercial operations. The business is still pre-revenue, remains unprofitable, and is forecast to stay that way for at least the next three years, making the road to commercial deployment, regulatory approvals, and meaningful partnerships crucial short-term catalysts. Despite high-profile strategic partnerships and strong share price gains over recent months, ongoing share dilution and high cash burn remain key risks. The recent handover in the CFO seat, now permanently filled by Priya Gupta, appears to have had little negative impact on these risk factors. A positive share price move followed the announcement, suggesting investors view this transition as broadly neutral for near-term execution, particularly as Archer's most pressing challenges remain tied to certification progress and capital requirements.
But with Archer's reliance on continued funding, dilution risk is something investors should not overlook. Archer Aviation's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.Explore 24 other fair value estimates on Archer Aviation - why the stock might be worth less than half the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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