Prediction: Here's What a $10,000 Investment in Archer Aviation Will Be Worth in 5 Years
Archer's stock could do well if the company can stay on track with its milestones.
Overview
As of today, Archer Aviation (NYSE: ACHR) is trading around $5.60 per share. This means a $10,000 investment would purchase roughly 1,785 shares. How much this position grows in the next five years relies almost exclusively on Archer's ability to execute, and right now, I'm cautiously bullish that the pieces are falling into place for the electric vertical takeoff and landing (eVTOL) company.
First, Archer became the first eVTOL developer to finish the third of four FAA Type Certification phases. The company is targeting a launch of U.S. operations later this year under the eVTOL Integration Pilot Program. Archer has $1.8 billion in liquidity, giving it a substantial runway to get up and running.
Details
Wall Street analysts believe Archer could reach nearly $11 in a year, which doubles a $10,000 investment in just 12 months. Furthermore, if Archer hits its stated milestones on schedule, a conservative 15% CAGR through 2031 would put shares near $19 five years from now. That means the original $10,000 investment is now about $35,000, or 3.5 times the initial amount.
Source
Originally published at www.fool.com.