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Investing.com - BTIG raised its price target on AeroVironment (NASDAQ:AVAV) to $300 from $225 on Friday, while maintaining a Buy rating on the defense technology company’s shares. The company, currently valued at $12.62 billion, has seen its stock surge to $275.73, trading near its 52-week high.
The price target increase follows a significant 43.3% rise in AeroVironment stock week-to-date, which BTIG acknowledged might "raise some eyebrows" among investors. According to InvestingPro data, the stock has delivered an impressive 77% return year-to-date, though current analysis suggests the stock may be overvalued relative to its Fair Value.
BTIG cited the current demand environment as a key factor in its decision, noting that AeroVironment remains attractively valued compared to other defense technology and space innovation companies.
According to BTIG’s analysis, AeroVironment is trading at approximately 8 times FY2025 pro forma sales, which positions it below most private defense technology peers that have implied sales multiples "well in the double digits."
The firm’s decision to maintain its Buy rating reflects its continued confidence in AeroVironment’s market position within the defense technology sector despite the recent rapid share price appreciation.
In other recent news, AeroVironment Inc. reported strong fourth-quarter earnings for fiscal year 2025, surpassing analysts’ expectations. The company posted an earnings per share of $1.61, exceeding the forecast of $1.40, and reported revenue of $275.1 million, which was higher than the anticipated $242.14 million. AeroVironment’s revenue for the entire fiscal year reached a record $821 million, marking a 14% increase year-over-year. The company also announced the successful completion of key development milestones for its Wildcat drone as part of DARPA’s Early VTOL Aircraft Demonstration program. Furthermore, AeroVironment’s stock received positive attention from analysts, with William Blair maintaining an Outperform rating due to reduced Ukraine exposure risk and strong growth prospects. Raymond (NSE:RYMD) James raised its price target for AeroVironment to $225, citing the company’s strong close to FY25 and strategic positioning following the BlueHalo merger. Stifel also reaffirmed its Buy rating, noting the company’s better-than-expected quarterly results. These developments highlight AeroVironment’s ongoing growth and strategic advancements in the defense technology sector.
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