Cantor Fitzgerald initiates AIRO Group stock with Overweight rating

Investing.com - Cantor Fitzgerald initiated coverage on AIRO Group (NASDAQ:AIRO) with an Overweight rating and a $35.00 price target on Tuesday. The stock, currently trading at $21.21, shows significant upside potential according to InvestingPro Fair Value calculations.

The research firm highlighted AIRO’s potential as a defense technology growth opportunity, noting a market shift from focusing on U.S. Government funding and Ukrainian security shortfalls toward companies with the fastest defense tech growth algorithms. With a market capitalization of $557 million and impressive gross profit margins of 67%, AIRO demonstrates strong operational efficiency despite current market challenges.

Cantor Fitzgerald described AIRO’s equity story as "medium-term drone profits being invested in longer-term EVTOL prospects," suggesting a strategic reinvestment approach by the company.

The firm expressed optimism about AIRO’s multi-year growth trajectory, specifically citing continued RQ-35 orders from NATO partners as a positive factor for the company’s future performance.

Additional growth drivers identified in the research note include potential Department of Defense Blue UAS certification and accelerating demand from non-NATO customers, which Cantor believes will support AIRO’s business expansion. InvestingPro analysis reveals several key factors about AIRO’s financial position, including moderate debt levels and high revenue growth potential. Subscribers can access 5 additional ProTips and comprehensive financial metrics to make more informed investment decisions.

In other recent news, AIRO Group has been the focus of analyst attention, with both BTIG and Mizuho (NYSE:MFG) initiating coverage on the company’s stock. BTIG has given AIRO a Buy rating with a price target of $26.00, while Mizuho has rated the stock as Outperform, setting a price target of $31.00. These assessments highlight AIRO’s potential in the aerospace, autonomy, and air mobility sectors. BTIG emphasizes the company’s strong position in the Drones segment, which they believe could lead to significant market share gains. Mizuho points to AIRO’s recent IPO as a key factor in securing capital for growth, with a notable backlog in drone orders and the Electric Air Mobility segment. The firm’s backlog includes 497 aircraft and a $1.2 billion eVTOL order within the Jaunt Journey program. Mizuho projects AIRO’s EBITDA to reach $40.5 million by 2027, indicating potential growth in the coming years. Both firms recognize the company’s pursuit of a total addressable market estimated at $315 billion by 2030.

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