AeroVironment Stock Gets Double Upgrade On Compelling Valuation, Strikes Chord With Retail Traders

AeroVironment's (AVAV) stock gained 6.8% on Monday after Raymond James upgraded the stock to ‘Strong Buy’ from ‘Market Perform.’

According to The Fly, the brokerage also set a $200 price target for the stock. The new PT implies a 76.4% upside compared to Monday’s close.

The stock has a consensus price target of $203.28, according to FinChat data.

The brokerage said it sees a 15% upside to consensus estimates over the near term and believes the valuation is compelling.

Raymond James noted that the standalone AeroVironment and its pending acquisition of Blue Halo position it as one of the "elder statesmen" of the Defense Disruptors.

AeroVironment agreed to acquire Blue Halo for $4.1 billion in an all-stock deal last year, which its stockholders approved last week.

The military drone maker had trimmed its annual sales forecast in March due to the impact of Southern California high winds, fires, and resulting blackouts and shutdowns.

However, its CEO said the company was on track for record fourth-quarter revenue despite lower sales to Ukraine.

Its funded backlog was a record $763.5 million at the end of Jan. 25, compared to $400.2 million as of April 30, 2024.

Retail sentiment on Stocktwits trended higher in the ‘bullish’ (70/100) territory than a day ago, while retail chatter was ‘normal.’

AeroVironment shares have fallen 23.3% year-to-date (YTD).

Also See: Billionaire Trump Ally Bill Ackman Repeats Calls For Up To 90-Day Pause On Tariffs, Sees ‘Unnecessary Harm’

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