On Thursday, Needham reiterated its Buy rating on Archer Aviation Inc. (NYSE: NYSE:ACHR) shares, maintaining a price target of $11.00.
The firm's confidence in the company's prospects was bolstered following a conversation with CEO Adam Goldstein at the 27th annual Needham Growth Conference.
During the event, the discussion with Goldstein reinforced Needham's belief in Archer Aviation's capacity to deliver on its approximately $6 billion order book.
This is expected to generate original equipment manufacturer (OEM) revenues even before full Federal Aviation Administration (FAA) regulatory approval is granted.
Needham anticipates that Archer Aviation's customers will begin taking small batch deliveries to evaluate and rigorously test their air taxi services.
The analysts said "We also see softer catalysts on the horizon in FY25 with the ball moving forward in the UAE in regard to air taxi infrastructure and test flights that should help to drive increased confidence in the longer-term opportunity, helping remove specific regulatory approval timing as an overhang."
Needham's price target of $11.00 for Archer Aviation is based on a valuation of 12.5 times the company's projected adjusted EBITDA for 2029, which has been discounted back to the present value.
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