AeroVironment Shares Surge on Bullish Analyst Coverage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy AVAV?
Source: Fool
- Analyst Optimism: JPMorgan analyst Seth Seifman initiated coverage of AeroVironment with a buy rating and a $320 price target, suggesting over 20% potential gains for investors, reflecting strong market confidence in the company.
- Strong Market Demand: AeroVironment's drones are playing vital roles in Ukraine and other conflict areas, with high demand among the U.S. military and its allies, highlighting the company's critical position in the global defense market.
- Increased Contract Orders: AeroVironment secured an $874 million contract from the U.S. Army in December to deliver unmanned aerial systems and counter-drone systems to allied and partner forces, further solidifying its market share in the defense sector.
- Revenue Growth Expectations: Seifman anticipates that AeroVironment's autonomous systems division will see revenue growth of approximately 14% annually, benefiting from the Department of Defense's push for domestic production of key armaments, indicating significant growth potential for the company in the coming years.
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Analyst Views on AVAV
Wall Street analysts forecast AVAV stock price to rise
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 243.870
Low
315.00
Averages
390.75
High
450.00
Current: 243.870
Low
315.00
Averages
390.75
High
450.00
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.
AeroVironment Shares Surge on Bullish Analyst Coverage
- Analyst Optimism: JPMorgan analyst Seth Seifman initiated coverage of AeroVironment with a buy rating and a $320 price target, suggesting over 20% potential gains for investors, reflecting strong market confidence in the company.
- Strong Market Demand: AeroVironment's drones are playing vital roles in Ukraine and other conflict areas, with high demand among the U.S. military and its allies, highlighting the company's critical position in the global defense market.
- Increased Contract Orders: AeroVironment secured an $874 million contract from the U.S. Army in December to deliver unmanned aerial systems and counter-drone systems to allied and partner forces, further solidifying its market share in the defense sector.
- Revenue Growth Expectations: Seifman anticipates that AeroVironment's autonomous systems division will see revenue growth of approximately 14% annually, benefiting from the Department of Defense's push for domestic production of key armaments, indicating significant growth potential for the company in the coming years.
See More
U.S. Markets Rose on Tuesday, with AeroVironment Leading the Gains
U.S. Stock Market Performance: Stock indexes in the U.S. saw an increase on Tuesday, indicating a positive market trend.
Index Gains: The S&P 500 rose by 0.14%, the Dow Jones increased by 0.10%, and the Nasdaq gained 0.07%.
See More
AeroVironment Receives Overweight Rating from JPMorgan
- Rating Upgrade: JPMorgan initiated coverage on AeroVironment with an Overweight rating and a $320 price target, reflecting market optimism about its future growth, particularly in the rapidly expanding defense sector.
- Growth Potential: Analyst Seth Seifman noted that AeroVironment's expertise in drones and counter-drone systems positions it well to achieve mid-teens growth in both U.S. and international markets, meeting increasing demand.
- Valuation Justification: Seifman argued that AeroVironment's stock deserves a premium valuation due to rising U.S. and international defense budgets and geopolitical risks, despite historically trading at an average of 4.7x forward sales.
- Technical Analysis: Although AeroVironment's stock has gained 70.37% over the past year, recent technical indicators suggest potential bearish momentum, with key support at $240; a break below this level could lead to further declines.
See More
AEROVIRONMENT STOCKS INCREASE BY 4.9% FOLLOWING JP MORGAN'S INITIATION OF COVERAGE WITH AN OVERWEIGHT RATING
Stock Performance: AeroVironment shares have increased by 4.9%.
JP Morgan Coverage: The rise follows JP Morgan initiating coverage with an overweight rating.
See More
Latest Ratings and Outlook from Wall Street
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- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
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JPMorgan Bullish on AeroVironment Stock Amid Rising Drone Demand
- Rating Upgrade: JPMorgan initiated an overweight rating on AeroVironment (AV), with analyst Seth Seifman setting a $320 price target, indicating a potential 31% upside, reflecting strong expectations for rising demand in drones and space capabilities.
- Market Growth Potential: Seifman highlighted AeroVironment's rapid growth in defense sectors both domestically and internationally, particularly in drones and counter-drone systems, forecasting mid-teens growth that underscores the company's competitive edge in the market.
- Acquisition Strategy: The acquisition of BlueHalo has provided AeroVironment with critical space capabilities, which the analyst believes will drive growth in the space and directed energy segments, further enhancing the company's profitability.
- International Sales Opportunities: Seifman noted that international sales accounted for 24% of AeroVironment's revenue in the first half of 2026, and with the U.S. Department of Defense's increasing demand for commercial products, the company is poised to achieve higher profitability through international markets.
See More
AeroVironment Shares Surge on Bullish Analyst Coverage
- Analyst Optimism: JPMorgan analyst Seth Seifman initiated coverage of AeroVironment with a buy rating and a $320 price target, suggesting over 20% potential gains for investors, reflecting strong market confidence in the company.
- Strong Market Demand: AeroVironment's drones are playing vital roles in Ukraine and other conflict areas, with high demand among the U.S. military and its allies, highlighting the company's critical position in the global defense market.
- Increased Contract Orders: AeroVironment secured an $874 million contract from the U.S. Army in December to deliver unmanned aerial systems and counter-drone systems to allied and partner forces, further solidifying its market share in the defense sector.
- Revenue Growth Expectations: Seifman anticipates that AeroVironment's autonomous systems division will see revenue growth of approximately 14% annually, benefiting from the Department of Defense's push for domestic production of key armaments, indicating significant growth potential for the company in the coming years.
See More
U.S. Markets Rose on Tuesday, with AeroVironment Leading the Gains
U.S. Stock Market Performance: Stock indexes in the U.S. saw an increase on Tuesday, indicating a positive market trend.
Index Gains: The S&P 500 rose by 0.14%, the Dow Jones increased by 0.10%, and the Nasdaq gained 0.07%.
See More
AeroVironment Receives Overweight Rating from JPMorgan
- Rating Upgrade: JPMorgan initiated coverage on AeroVironment with an Overweight rating and a $320 price target, reflecting market optimism about its future growth, particularly in the rapidly expanding defense sector.
- Growth Potential: Analyst Seth Seifman noted that AeroVironment's expertise in drones and counter-drone systems positions it well to achieve mid-teens growth in both U.S. and international markets, meeting increasing demand.
- Valuation Justification: Seifman argued that AeroVironment's stock deserves a premium valuation due to rising U.S. and international defense budgets and geopolitical risks, despite historically trading at an average of 4.7x forward sales.
- Technical Analysis: Although AeroVironment's stock has gained 70.37% over the past year, recent technical indicators suggest potential bearish momentum, with key support at $240; a break below this level could lead to further declines.
See More
AEROVIRONMENT STOCKS INCREASE BY 4.9% FOLLOWING JP MORGAN'S INITIATION OF COVERAGE WITH AN OVERWEIGHT RATING
Stock Performance: AeroVironment shares have increased by 4.9%.
JP Morgan Coverage: The rise follows JP Morgan initiating coverage with an overweight rating.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
See More
JPMorgan Bullish on AeroVironment Stock Amid Rising Drone Demand
- Rating Upgrade: JPMorgan initiated an overweight rating on AeroVironment (AV), with analyst Seth Seifman setting a $320 price target, indicating a potential 31% upside, reflecting strong expectations for rising demand in drones and space capabilities.
- Market Growth Potential: Seifman highlighted AeroVironment's rapid growth in defense sectors both domestically and internationally, particularly in drones and counter-drone systems, forecasting mid-teens growth that underscores the company's competitive edge in the market.
- Acquisition Strategy: The acquisition of BlueHalo has provided AeroVironment with critical space capabilities, which the analyst believes will drive growth in the space and directed energy segments, further enhancing the company's profitability.
- International Sales Opportunities: Seifman noted that international sales accounted for 24% of AeroVironment's revenue in the first half of 2026, and with the U.S. Department of Defense's increasing demand for commercial products, the company is poised to achieve higher profitability through international markets.
See More
