By Chris Wack
Archer Aviation Inc. shares were up 20% to $4.45 after JP Morgan initiated coverage of the stock with an overweight recommendation and a 2022 year-end price target of $7.
On Wednesday, the company said it was creating a joint electric vertical take-off and landing advisory committee with United Airlines.
JP Morgan analyst Bill Peterson said Archer is on a solid path to eVTOL certification, and now is an “early boarding opportunity” for investors.
The joint committee will focus on advising on maintenance and operational concepts to recommend to Archer for its all-electric aircraft aimed at driving towards best-in-class operational standards in the emerging eVTOL industry, Archer said. The committee will be co-chaired by Archer’s vice president of engineering, Dave Dennison, and United’s Mauricio Angel, managing director of United Express TechOps Strategy and Operations.
Over the longer term, Archer said its goal is to work with United to create fleet support using logistics concepts and networks already in use, creating operational efficiencies.
The stock hit its 52-week low of $2.61 on Feb. 24.
Write to Chris Wack at [email protected]
Credit: www.marketwatch.com /