Archer Aviation Inc. (ACHR) witnessed a significant pre-market plunge of 5.25% on Friday, January 10th, 2025, as shares of the electric vertical takeoff and landing (eVTOL) aircraft maker reacted to a downgrade by J.P. Morgan analyst Bill Peterson.
Peterson downgraded Archer Aviation's stock rating from Buy to Hold, citing concerns that the company's shares have risen too far too fast in recent months. Despite increasing his price target for Archer from $6 to $9, the analyst believes that the current stock price is trading as if the company's aircraft have already been certified for commercial flights, which is not expected until 2025.
The analyst noted that Archer Aviation and other eVTOL companies like Joby Aviation have seen their stocks surge, potentially driven by expectations that a new administration will be favorable for the industry. However, Peterson cautioned that too much positive sentiment is already reflected in the share prices, warranting an "altitude adjustment" for the sector.
