JPMorgan shifted gears on air mobility stocks Archer Aviation Inc (NYSE:ACHR) and Joby Aviation Inc (NYSE:JOBY), downgrading them despite strong sector enthusiasm.

Analyst Bill Peterson adjusted Archer Aviation stock to a Neutral rating and Joby Aviation stock to Underweight, noting their significant market gains surged past what fundamentals justify.

Market Enthusiasm Outpaces Fundamentals

Peterson highlighted that Archer and Joby have outperformed the Clean Tech sector, gaining 145% and 86%, respectively, over the past six months. This rise correlates with speculative inflows and market movements aligned with Tesla Inc (NASDAQ:TSLA) and Rocket Lab USA Inc (NASDAQ:RKLB). “These companies are trading as if regulatory hurdles have already been cleared,” …

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