AeroVironment climbs after US Army drone contract wins, Raymond James upgrade
AeroVironment's AVAV.O shares up 4% at $205.69 on Mon after U.S. Army contract wins and Raymond James upgrade
On Fri, AVAV received from the Army two firm-fixed-price contract awards for its P550 long-range reconnaissance drones worth $117.3 mln and for its Red Dragon systems and related equipment worth $17.6 mln
Raymond James raises rating on AVAV to 'market perform' from 'underperform', pointing to valuation following the stock's ~35% decline since Mar 2
AVAV's multiple compression (from ~34x NTM EBITDA to ~28x), negative estimate revisions, and significant stock underperformance balance the risk/reward, Raymond James analyst team led by Brian Gesuale wrote in a note to clients
BTIG analyst Andre Madrid reiterated his 'buy' rating, saying contract awards are further evidence of broad-based momentum across AVAV's Autonomous Systems (AxS) segment
On Mar 10, AVAV slashed its fiscal 2026 rev target to $1.85-$1.95 bln, from $1.95-$2.0 bln, and posted $151.3 mln goodwill impairment, a charge tied to halt of the U.S. Space Force’s SCAR satellite communications program
Avg rating of 19 brokerages on the stock is "buy"; median PT of $310 down from $390.50 a month ago, per LSEG
With move on Mon, AVAV stock down ~15% YTD, including ~18% drop this month
