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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating on AeroVironment (NASDAQ:AVAV) with a price target of $335.00, according to a research note released Tuesday. With a current market capitalization of $11.48 billion, InvestingPro data indicates the stock is trading above its Fair Value, though analysts maintain a strong buy consensus with targets ranging from $225 to $335.
The research firm expects AeroVironment to outperform after beating Street estimates on both revenue and EBITDA, while also highlighting significant near-term award opportunities for the company. This optimism is supported by impressive revenue growth of 44% over the last twelve months, according to InvestingPro data.
Cantor Fitzgerald noted that cash flow performance was weaker than expected, though it anticipates free cash flow will improve throughout the year as AeroVironment benefits from better working capital trends.
The firm identified potential risks to underperforming Street estimates for fiscal year 2026 free cash flow, considering the growth backdrop and Blue Halo integration, but suggested that sentiment gaps around cash flow performance could create investment opportunities.
Cantor Fitzgerald believes AeroVironment is positioned to benefit from material near-term awards in unmanned aerial vehicles, with management characterizing long-range reconnaissance as "imminent," alongside other accounts enabled by its technology capabilities.
In other recent news, AeroVironment Inc. reported its first-quarter fiscal year 2026 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.32, slightly above the forecasted $0.31. Additionally, AeroVironment exceeded revenue projections by reporting $454.7 million compared to the anticipated $442.12 million. Despite these positive financial results, AeroVironment’s stock experienced a decline in the aftermarket. Investors are considering the broader implications of the company’s financial performance and future guidance. These developments reflect the latest updates surrounding AeroVironment’s financial health and market position.
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