Archer Aviation(NYSE: ACHR) stock surged in July's trading. The company's share price rose 18.5% in the month, according to data from S&P Global Market Intelligence.
Thanks to a series of positive developments, Archer Aviation was able to post gains despite volatility in the broader market. The flying-taxi specialist attracted new investment from Stellantis, received positive analyst coverage, and benefited from other bullish catalysts.
July was a good month for Archer Aviation
Archer is a pioneering player in electric vertical take-off and landing (eVTOL) aircraft -- or "flying taxis" as they're often called. The company has been holding successful test flights for its Midnight vehicle, and it recently confirmed that it's on track to complete a facility late in 2024 that will be able to produce 650 of the eVTOL aircraft each year.
Image source: Getty Images.
At the beginning of July, automotive company Stellantis announced it was investing an additional $55 million in Archer Aviation. The investment came on the heels of a successful test flight for one of Archer's Midnight flying vehicles. Stellantis had invested $110 million in Archer in 2023.
On July 12, the flying-taxi company published a press release announcing it had formed a new partnership with Southwest Airlines. The two companies are teaming up to develop plans to operate Archer's vehicles at airports in California.
Investors got some more good news on July 17, when Archer announced it had received new support for its $117 million manufacturing expansion project in California from a department in the state treasury office. The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) granted Archer a sales and tax exclusion that could create a net benefit of approximately $10 million for the company over the next several years.
The company also received some positive coverage from a high-profile source. On July 24, JPMorgan published a bullish note on Archer Aviation stock. The bank's lead analyst on Archer maintained an overweight rating on the company and raised his one-year price target from $5 per share to $6 per share. With the stock closing out this week's session priced at roughly $4 per share, that would suggest upside of 50%.
Archer Aviation stock could be volatile this coming week
Archer Aviation stock has fallen 3.8% early in August's trading. While there hasn't been any business-specific news pushing the company's share price lower, the stock has pulled in conjunction with the broader market amid a renewed focus on macroeconomic risk factors.
Archer Aviation is scheduled to publish its second-quarter earnings results after the market closes on Aug. 8. While it's unlikely that the business will report any significant revenue in the quarter, the company's operating expenses and net loss for the quarter will provide some valuable data and could spur swings for the stock. Management could also share some new info about the company's manufacturing plant and production ramping up next year.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines and Stellantis. The Motley Fool has a disclosure policy.
