TLDR
- Raymond James analyst Savanthi Syth maintained a Buy rating on Archer Aviation (ACHR) with a $13 price target, implying ~90% upside.
- ACHR stock dropped 4.15% on Friday, closing at $6.93.
- The same analyst downgraded Vertical Aerospace (EVTL) to Sell from Hold, citing funding concerns and market aversion to high-risk ventures.
- Archer has 63 months of cash on hand vs. Vertical Aerospace’s 13 months, making it the analyst’s preferred eVTOL pick.
- The Street’s consensus on ACHR is “Moderate Buy” with an average price target of $11.50, implying ~66% upside.
Raymond James analyst Savanthi Syth issued a split verdict on the eVTOL sector Monday, doubling down on Archer Aviation (ACHR) while cutting Vertical Aerospace (EVTL) to Sell.
Syth kept her Buy rating and $13 price target on Archer, pointing to nearly 90% upside from Friday’s close of $6.93. The stock had fallen 4.15% that day.
Despite the short-term dip, Syth’s view hasn’t shifted. A recent short seller report questioned Archer’s path to FAA type approval, but the analyst appears to be looking past it.
Archer is still working toward FAA type approval later this year, a critical milestone before it can launch commercial air taxi service in the U.S. The company also recently opened a new engineering hub in Bristol, UK.
On the cash side, Syth calculates Archer has 63 months of runway based on 2026 free cash flow. That puts it ahead of Joby Aviation at 62 months, and well ahead of Vertical Aerospace at just 13 months.
That gap is a big part of why Syth called Archer her “sole Outperform-rated eVTOL stock,” citing its relative valuation and a less capital-heavy path to commercialization.
Vertical Aerospace Takes the Hit
Vertical Aerospace wasn’t so lucky. Syth cut her rating on the UK-based eVTOL maker to Sell from Hold, sending the stock down 7.3% to $4.09 in early Monday trading.
She acknowledged the company’s management and its progress under strict UK Civil Aviation Authority requirements. But she flagged a funding problem.
Vertical ended Q3 with roughly $120 million in cash and access to another $100 million via an at-the-market offering. With projected burn of around $200 million per year over the next two years, the math gets tight fast.
“The market has soured on higher-risk ventures lately,” Syth wrote, explaining the downgrade. Vertical did not immediately respond to a request for comment.
Coming into Monday, Vertical was already down 17% year-to-date and 5% over the past 12 months. The stock also missed the post-election rally that lifted Archer and Joby, remaining roughly flat since November 2024.
Where ACHR Stands With the Street
Archer’s broader analyst picture looks decent. According to FactSet, 75% of analysts covering the stock rate it a Buy — well above the S&P 500 average Buy-rating ratio of about 55%.
The consensus across three recent ratings sits at “Moderate Buy” with an average price target of $11.50, implying around 66% upside from current levels.
Archer stock was down about 1.2% in early Monday trading at $6.86. Year-to-date, it’s down 8% and down 24% over the past 12 months, though it’s still up roughly 100% from November 2024 levels.
Joby was down 25% year-to-date but up 41% over the past 12 months, also sitting around double its November 2024 price.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
