AeroVironment tumbles again after US government issues stop work order on Space Force's SCAR program
AeroVironment's AVAV.O shares down 8% at $304.57 on Weds, adding to sharp losses in prior session
AVAV shares tumbled 15.8% for their steepest daily decline since Dec 2024 after co early Tues disclosed that on Jan 16, upon mutual agreement, the U.S. government issued a stop work order of its Other Transaction Agreement for delivery of BADGER phased array antenna systems to support the U.S. Space Force's Satellite Communications Augmentation Resource (“SCAR”) program
The stop work order allows both parties to negotiate an amended, firm-fixed price agreement for the future of the program, per the filing
AVAV said it expects to continue to deliver capabilities and products for the program
In research note on Tues, BTIG said while the magnitude of the stop work order's impact will depend on the new contract's scope and the stoppage's duration, it "would not be surprised to see some sales and EBITDA pushed out"
BTIG, which has a 'buy' rating on AVAV, left its estimates and $415 PT unchanged
With the move on the session, AVAV shares still up 26% to begin 2026 and up roughly 70% over the past 12 months
16 of 17 brokerages rate the stock "strong buy" or "buy", 1 has "hold"; median PT $395.50, per LSEG
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