Shares of Archer Aviation Inc (NYSE:ACHR) tanked in early trading on Tuesday, after the company reported downbeat fourth-quarter earnings on Monday.

Here are the key analyst insights:

• Needham analyst Chris Pierce reiterated a Buy rating, while cutting the price target from $10 to $9.
• JPMorgan analyst Bill Peterson maintained a Neutral rating on the stock.

Check out other analyst stock ratings.

Needham: Questions around whether the technology behind Archer Aviation's Midnight aircraft actually works had dampened investor enthusiasm in 2025, Pierce said in a note. The company now faces a catalyst-rich year versus low expectations, with its updated Midnight aircraft "working towards piloted transition flight in the near term," he added.

A cash balance of $2 billion helps Archer Aviation weather further delays, the analyst stated. However, the updated model "pushes out aircraft production against increased financial losses, creating additional capital needs," he further wrote.

JPMorgan: Archer Aviation reported an adjusted EBITDA loss of $138 million, toward the higher end of its guidance range of $110-$140 million, "on continued investment in certification, manufacturing, and go-to-market effort," Peterson said. The company guided to a widening adjusted EBITDA loss of $160-180 million for the first quarter, he added.

The loss may continue widening through the rest of the year, the analyst stated. "Archer ended the quarter with ~$2B of liquidity, although we suspect the company will need to raise incremental capital, potentially several times, before generating sustained positive FCF," he further wrote.

ACHR Price Action: Shares of Archer Aviation had declined by 12.18% to $6.60 at the time of publication on Tuesday.

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