Archer Aviation (ACHR) shares are experiencing a significant decline today following a downgrade from J.P. Morgan. The investment bank lowered its rating on Archer Aviation from "overweight" to "neutral," citing concerns over the stock's valuation and potential market volatility. J.P. Morgan set a new price target of $9.00, suggesting a downside from the previous close. This downgrade comes amid broader caution in the eVTOL sector, as analysts weigh the impact of potential deregulation under the new Trump administration against the companies' ongoing challenges in meeting stringent safety standards and testing requirements.
Additionally, Archer Aviation's decision to double its share count has contributed to the stock's volatility, with the increased supply putting downward pressure on the share price. Despite this, some analysts remain optimistic about the company's long-term prospects, with Canaccord raising its price target to $14, driven by a shift in energy investment trends.
Archer Aviation's stock is currently trading at $9.23, down 11.93% from its previous close of $10.48, and has seen a 5.53% decline from its opening price of $9.77.