AeroVironment Inc's stock price increased by 9.78%, reaching a 20-day high, despite the broader market's decline with the Nasdaq-100 down 0.59% and the S&P 500 down 0.08%.
This surge is attributed to the company's reported 151% year-over-year revenue growth to $472.5 million in Q2, primarily driven by the acquisition of BlueHalo. However, the company faced a GAAP operating loss and lowered its full-year adjusted EPS guidance, which disappointed investors. Despite these challenges, analysts maintain a bullish outlook on AeroVironment's future prospects, particularly in light of the increased demand for drone technology following recent regulatory changes.
The strong revenue growth indicates robust performance in the drone market, and the increased funded backlog suggests potential for future revenue, even as the company navigates current profitability pressures.
Wall Street analysts forecast AVAV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVAV is 387.00 USD with a low forecast of 285.00 USD and a high forecast of 450.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast AVAV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVAV is 387.00 USD with a low forecast of 285.00 USD and a high forecast of 450.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 293.220
Low
285.00
Averages
387.00
High
450.00
Current: 293.220
Low
285.00
Averages
387.00
High
450.00
KeyBanc
Overweight
maintain
$285 -> $330
2026-01-28
New
Reason
KeyBanc
Price Target
$285 -> $330
AI Analysis
2026-01-28
New
maintain
Overweight
Reason
KeyBanc raised the firm's price target on AeroVironment to $330 from $285 and keeps an Overweight rating on the shares. Post the swath of recent events and headlines directly impacting the space and defense technology industries, the firm is updating view on the sector. KeyBanc sees an ideal macro environment persisting through 2026, driving significant growth opportunities and potential re-ratings of space and defense tech equities.
William Blair
Louis DiPalma
Outperform
initiated
2026-01-07
Reason
William Blair
Louis DiPalma
Price Target
2026-01-07
initiated
Outperform
Reason
William Blair analyst Louis DiPalma initiated coverage of Vertical Aerospace with an Outperform rating without a price target. The company is positioned to "capture significant share in the nascent but potentially large" urban air mobility market, the analyst tells investors in a research note. The firm says Vertical has "metaphorically flown under the radar" relative to peers. The company's Valo electric vertical take-off and landing aircraft supports ample luggage capacity that is critical for airport passenger transportation, contends Blair. In bullish scenarios, there could be as many as 30,000 eVTOL aircraft in service globally by 2045, it adds.
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Canaccord
Austin Moeller
Buy
maintain
$11
2025-12-29
Reason
Canaccord
Austin Moeller
Price Target
$11
2025-12-29
maintain
Buy
Reason
Canaccord analyst Austin Moeller keeps a Buy rating on Vertical Aerospace with an $11 price target after hosting management meetings with investors. The firm says management highlighted of the company's final certification aircraft, Valo, as the premium electric vertical take-off and landing aircraft entering the urban air mobility market. Valo features new enhancements like a more aerodynamic airframe, under-floor battery storage, redesigned wing and propeller architectures supplied by Tier 1 aerospace vendors, the analyst tells investors in a research note. Canaccord believes Valo's unveiling support management's prior comments that Vertical is developing a premium product. The main overhang on the stock continues to be the company's capital constraints, but successful execution should likely create a better capital raising environment for Vertical, contends the firm.
KeyBanc
Michael Leshock
initiated
$285
2025-12-18
Reason
KeyBanc
Michael Leshock
Price Target
$285
2025-12-18
initiated
Reason
KeyBanc analyst Michael Leshock initiated coverage of AeroVironment with an Overweight rating and $285 price target.
About AVAV
AeroVironment, Inc. is a defense technology provider delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, precision strike systems, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities. The Company’s segments include Autonomous Systems (AxS) and Space, Cyber, and Directed Energy (SCDE). The AxS segment focuses on the design, development, production, delivery, and support of intelligent, multi-domain robotic systems, including uncrewed aircraft systems (UAS) and ground robot systems. It includes the Company’s former Uncrewed Systems, Loitering Munitions Systems, and MacCready Works segments as well as Radio Frequency and Kinetic Counter-UAS Electronic Warfare Systems and others. The SCDE segment focuses on advanced technologies in the space domain providing space-based and ground-based platforms, cyber capabilities, and directed energy systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
