Why Archer Aviation Stock Soared 17.2% Higher in April

Extending the 5.6% decline that it suffered in March, the S&P 500 (SNPINDEX: ^GSPC) inched almost 0.7% lower in April. Of course, there were stocks that bucked the trend and managed to gain altitude last month. Archer Aviation (NYSE: ACHR), for example, ascended 17.2% higher, according to data provided by S&P Global Market Intelligence.

In addition to the company announcing advancements in its goal to bring air taxi service via its electric vertical take-off and landing (eVTOL) aircraft to customers, investors loaded up on shares of Archer after learning of an analyst's auspicious outlook for its stock.

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More than one factor lifted shares higher

On April 17, investors gained more insight into Archer's plan for air taxi service in and around New York City. In collaboration with United Airlines, Archer aspires to offer customers the ability to travel from Manhattan to airports located on Long Island, northern New Jersey, and Westchester County on flights that last under 20 minutes -- a considerable time-saver over trips by car that can take as much as several hours, depending on traffic.

Addressing Archer's vision for reimagining travel around the New York metropolitan area, Adam Goldstein, Archer's founder and CEO, said:

The New York region is home to three of the world's preeminent airports, serving upwards of 150 million passengers annually. But the drive from Manhattan to any of these airports can be painful, taking one, sometimes two hours. We want to change that by giving residents and visitors the option to complete trips in mere minutes.

With respect to the company's business in the Middle East, Archer announced that officials in the United Arab Emirates had approved the transformation of a helipad at the Abu Dhabi Cruise Terminal into a hybrid heliport where both helicopters and eVTOL aircraft can operate.

The progress toward developing infrastructure for Archer's eVTOL aircraft is something that investors are watching closely, as the company has suggested that it may begin commercial operations in the UAE as early as the fourth quarter of 2025.

Providing the bulls with more reason to click the buy button, Needham analyst Chris Pierce reiterated a buy rating on Archer stock on April 21 and maintained a $13 price target toward the end of the month. At that time, the price target implied upside of about 80% from where the stock had closed the day prior.

Should investors now aim to buy Archer stock?

Achieving further progress in its march toward commencing commercial operations, Archer notched an important success in Abu Dhabi -- something that investors certainly appreciated. Likewise, its intention of providing air taxi service in and around New York City also earned approval from investors.

Despite the stock's climb in April, shares are still down about 5% year to date, as of this writing. Those scanning the skies for an intriguing growth opportunity should certainly take a closer look at Archer stock right now, undeterred by the stock's recent rise.

Should you invest $1,000 in Archer Aviation right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.