BTIG initiates AIRO Group stock with Buy rating, $26 price target

Published 08/07/2025, 11:52
BTIG initiates AIRO Group stock with Buy rating, $26 price target

Investing.com - BTIG initiated coverage on AIRO Group (NASDAQ:AIRO) with a Buy rating and a price target of $26.00 on Tuesday. According to InvestingPro data, AIRO currently trades at $21.29, with a market capitalization of $557 million. The company maintains impressive gross profit margins of nearly 67%.

The research firm views AIRO as a "differentiated aerospace, autonomy, and air mobility company" operating across four segments: Drones, Avionics, Training, and Electric Air Mobility (EAM).

BTIG believes AIRO’s solutions, particularly in the Drones segment, position the company to capture significant market share amid heightened global security concerns.

The firm highlighted AIRO’s Electric Air Mobility approach as having a "low-risk, high-reward profile" in a market that is becoming "increasingly promising" due to recent federal initiatives and executive orders.

BTIG also noted that AIRO’s Avionics and Training segments could create synergies for the Drones and EAM businesses, potentially driving additional growth in future years as the company targets a combined total addressable market worth $315 billion by 2030.

In other recent news, AIRO Group has caught the attention of Mizuho (NYSE:MFG), which initiated coverage on the company with an Outperform rating and set a price target of $31.00. Mizuho’s analysis comes on the heels of AIRO’s recent IPO, where the firm served as a joint-lead book-running manager. The investment bank emphasized AIRO’s robust financial position following the IPO, which is expected to support growth across its core segments: Drones, Avionics, and Training. Additionally, Mizuho pointed out AIRO’s significant drone backlog exceeding $250 million, which is anticipated to provide near-term revenue coverage. The firm also highlighted the company’s strategic plans to expand into NATO countries and the U.S. market, projecting segment revenue to reach approximately $200 million by 2028. Mizuho noted an "$8/share optionality" in AIRO’s Electric Air Mobility sector, bolstered by Canadian government support and customer deposits totaling 497 aircraft and a $1.2 billion eVTOL backlog within the Jaunt Journey program. The firm provided EBITDA estimates of $19.1 million for 2025, $19.9 million for 2026, and $40.5 million for 2027, while identifying a total addressable market of about $315 billion. These developments indicate a strategic focus on expanding AIRO’s market presence and capitalizing on its existing backlog and new opportunities.

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