Cantor Sees Broad Aerospace Potential in Archer Aviation's Boeing Deal

Archer Aviation's deal to acquire Boeing's Wisk Aero, Insitu, and SkyGrid businesses has sparked debate among Wall Street analysts. Cantor Fitzgerald's Andres Sheppard views the acquisitions as 'material and transformational,' saying they change what investors should think Archer can become.

Cantor sees a diversified aerospace, defense, and eVTOL platform emerging from these deals. The Insitu business is expected to add more than $200 million in annual revenue after the deal closes. Wisk brings eVTOL and autonomous flight technology, while SkyGrid adds air traffic management software. Boeing will take a stake of less than 20% in Archer.

However, Goldman Sachs' Noah Poponak remains cautious, saying the acquisitions do not give Archer much more valuation credit yet. He expects revenue to grow, but lists certification timing, Archer's lack of vertical integration, and the defense timeline as key risks.