Shares of Archer Aviation (ACHR -11.26%), the high-flying electric vertical takeoff and landing (eVTOL) stock, were pulling back today after JPMorgan Chase weighed in on the stock, downgrading its rating from overweight to neutral on valuation concerns, as well as the belief that the market may be getting ahead of itself.

As of 11:58 a.m. ET, the stock was down 11.6% on the news.

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Archer loses altitude

JPMorgan says that the stock was trading as if the company had received full certification, which it has not. The firm sees certification as a mostly binary event, and it will be essential for its air taxis to take flight.

JPMorgan also noted its recent partnership with defense tech start-up Anduril, seeing it as a positive, but believes expectations for the stock have outpaced reality. It thought the post-election rally was overdone, acknowledging that the Trump administration presents some unforeseen risks and likely volatility.

In addition to the downgrade, JPMorgan lowered its price target on the stock from $9 to $6.

What it means for Archer Aviation

Shares of Archer and fellow eVTOL stock Joby Aviation soared following the election, though it's not fully clear why. Archer has no revenue currently, as it's still a development-stage company focusing on an unproven new technology.

Analysts expect the company to begin generating revenue later this year, as it aims to launch new air routes in the United Arab Emirates.

The company enjoys backing from a number of big-name partners, including United Airlines and Stellantis, but the stock is highly speculative, especially since it's behind rival Joby in commercialization. At this point, JPMorgan's cautiousness is warranted, as Archer has been behaving like a meme stock.

New technology could easily be delayed or not live up to expectations. Investors should wait for clearer signs of success before jumping into the stock.