Archer Aviation (NYSE:ACHR) is a premier player in the rapidly evolving flying-car industry. If you anticipate growth in the market for electric vertical takeoff and landing (eVTOL) vehicles, stay tuned. My ACHR stock forecast indicates that substantially higher share prices are coming for patient investors.
To cite a statistic from InvestorPlace contributor Muslim Farooque, the market for flying cars is projected to rise to $207.23 billion this year. This, Farooque points out, “would mark a meteoric compound annual growth rate (CAGR) of 55.7%.”
Meteoric, indeed. Archer Aviation represents the vanguard of a future hyper-growth industry that’s really just in its infancy now. So, fasten your seat belt as we’re about to explore the high-flyer potential Archer Aviation stock.
It’s Amazing That ACHR Stock Isn’t Over $7 Now
I agree 100% with Archer Aviation CEO Adam Goldstein’s vision of the eVTOL industry’s future. He declared, “The category of electrical vertical take-off and landing aircraft to be used as air taxis has the potential to be absolutely huge.”
Furthermore, Goldstein pointed out that eVTOL aircraft “can travel up to 100 miles” and “can be used across so many applications.” It’s exciting to consider a world in which flying cars are commonplace.
Yet, the market just doesn’t seem to be fully convinced of Goldstein’s vision. ACHR stock has bumped its head on the $7 resistance level on more than one occasion, only to fall back to $5.
Frankly, I fail to see why some investors aren’t convinced. After all, Archer Aviation won the “Transportation Design of the Year” award from the MUSE Design Awards. Moreover, Archer Aviation has a purchase order from a company in the United Arab Emirates (UAE) for up to 100 of the company’s Midnight aircraft.
Not only that, but Archer Aviation is collaborating with the National Aeronautics and Space Administration (NASA) to advance a battery-system design for Archer’s Midnight aircraft. If this collaboration yields the desired results, Archer Aviation could establish itself as a clear leader in developing battery systems for advanced air mobility and space-flight applications.
Archer Aviation Takes a Big Step Forward
The dream of legally putting flying cars in the air just got one step closer to reality. That’s because Archer Aviation just successfully completed Phase 1 of the company’s test-flight program.
The goal is to get Archer Aviation’s Midnight aircraft certified by the Federal Aviation Administration (FAA). Impressively, Archer Aviation completed Phase 1 of flight testing in just three months.
Earning FAA certification is the holy grail for a U.S.-based eVTOL manufacturer like Archer Aviation. The company might achieve this goal fairly soon. On that topic, Archer Aviation assured that “Midnight remains firmly on track to complete its first full wing-borne transition flight and begin piloted ‘for credit’ testing with the FAA later this year.”
Looking ahead, Archer Aviation expects to achieve FAA certification as well as entry into service in 2025. Where will ACHR stock be then? Given Archer’s swift flight-test progress, don’t be surprised if the share price runs much higher than $7.
Archer Aviation Stock Forecast: Target $7 and More
My previous ACHR stock forecast called for it to reach $7, and I’m sticking to that prediction. Archer Aviation is a NASA-backed leader in advancing eVTOL and related infrastructure technology. Yet, the market doesn’t seem to fully appreciate this up-and-coming air-taxi company.
That’s not a problem, but only an opportunity for enterprising investors. Forward-looking stock traders should see the future growth potential for Archer Aviation, even if the market doesn’t.
So, don’t hesitate to grab a few shares of ACHR stock while they’re still below $7. Eventually, the shares will be worth much more than that and your portfolio’s value will fly like an air taxi.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
