• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Archer Aviation wins LA28 Olympics contract: is ACHR grossly undervalued?

by May 17, 2025
by May 17, 2025

Archer Aviation Inc (NYSE: ACHR) has been named the official air taxi provider for the LA28 Olympics. Shares of the eVTOL company are up 10% at the time of writing.  

ACHR’s electric vertical take-off and landing vehicles are now slated to be used in several ways, including transportation of VIP guests, fans, and stakeholders at the LA28 Games, a press release confirmed on Friday.

Including today’s gain, Archer Aviation stock is up more than 100% versus its year-to-date low.

Archer Aviation stock has a trillion-dollar opportunity

Archer Aviation is increasingly becoming a key name in the fast-growing air taxi market that many believe will be worth more than a trillion-dollar over the next few years.

ACHR shares continue to attract investors this year as the company is playing it smart.

On the one hand, it’s committed to commercial applications of the eVTOLs – while on the other, it’s working with the defense sector as well.

Together, this dual-focused approach could help Archer Aviation grow its annual revenue into the billions by the end of this decade. Note that ACHR stock is already trading at a multi-year high at writing.

ACHR shares could benefit from recent partnerships

Archer Aviation is an exciting pick for exposure to urban air mobility, also because it’s not the one to paint a rosy picture of what the future “may” look like.

It has the numbers to substantiate that it’s working diligently towards that future.

For example, the NYSE-listed firm currently has a backlog of some $6 billion, signalling strong demand for its eVTOLs.

Plus, it has teamed up with notable names like Anduril Industries and even the market favourite, Palantir Technologies, in a show of its commitment to transforming the way people get around a city.

ACHR’s team up with Palantir is particularly thrilling since it aims at revolutionising aviation logistics with the use of artificial intelligence, which could unlock extraordinary upside for Archer Aviation stock over time.

What Archer Aviation’s current valuation tells us

A $6 billion order book makes Archer Aviation stock grossly undervalued at current levels since a multiple of just 2x on that backlog makes ACHR worth $24 a share at least, indicating potential upside of another 80% from here.  

What’s also worth mentioning is that a 2x multiple is unusually conservative for high-growth tech names, which Archer Aviation is by all means, especially after its team-up with Palantir.

It’s fairly common for high-growth tech companies to command a multiple of 5x or even 10x their estimated revenue.

That’s part of the reason why Cantor Fitzgerald reiterated its bullish view on ACHR shares after the LA28 Olympics news on Friday.

The urban air mobility specialist does not currently pay a dividend, though.

The post Archer Aviation wins LA28 Olympics contract: is ACHR grossly undervalued? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Eli Lilly pulls ahead of Novo in obesity drug gold rush as new players crowd in
next post
Why this investment bank sees more than 30% upside on Meta

Related Posts

Opendoor stock plunges 21% after weak forecast: could...

August 7, 2025

Why Upstart stock tanked on Q2 earnings and...

August 7, 2025

GLD ETF analysis: is this gold fund on...

August 7, 2025

Asian markets open: Nikkei flat on US chip...

August 7, 2025

Europe markets open: Stocks rise; Maersk Q2 profit...

August 7, 2025

SoftBank posts strong quarterly profit of around $2.9B...

August 7, 2025

Trump and Putin to meet next week; White...

August 7, 2025

Is America really getting rich off tariff revenue?

August 7, 2025

Israel’s Leviathan gas field secures historic $35B export...

August 7, 2025

Trump’s tariff gamble on chips and drugs could...

August 6, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • What Families Gain at the Dinner Table

    August 7, 2025
  • Superman, Sneaking Snacks into Movies, and the Mystery of Social Order

    August 7, 2025
  • How Telematics Is Reshaping Transportation

    August 7, 2025
  • What Families Gain at the Dinner Table

    August 7, 2025
  • Would Superman Bring Coffee to the Movies?

    August 7, 2025
  • Opendoor stock plunges 21% after weak forecast: could more downside be ahead?

    August 7, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 6

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,114)
  • Editor's Pick (210)
  • Investing (185)
  • Stock (1,413)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

US government shutdown looms: how will the...

March 15, 2025

BofA raises STOXX 600 target amid resilient...

June 21, 2025

Crude oil faces extended downside risks amid...

June 4, 2025