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Investing.com - Cantor Fitzgerald maintained its Overweight rating and $35.00 price target on AIRO Group (NASDAQ:AIRO) in a research note released Tuesday. The stock, currently trading at $28.28, has shown strong momentum with a 30.5% gain over the past week. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 67%.
The investment firm’s analysis is based on a weighted average of two valuation approaches: EV/EBITDA (50%) and FCF yield (50%), measured against fiscal year 2027 estimates. InvestingPro analysis suggests the stock is currently trading slightly above its Fair Value, with an EV/EBITDA multiple of 25.4x.
Cantor Fitzgerald positions AIRO within its Defense Tech coverage framework, applying valuation metrics that lean toward Space multiples due to similarities in contract structures and growth visibility compared to GovTech names with slower-growing Civil and Cost+ exposure.
The firm targets a discount to Kratos Defense (NASDAQ:KTOS) and AeroVironment (NASDAQ:AVAV) for AIRO, citing capital intensity and risk associated with the company’s upcoming EVTOL (Electric Vertical Takeoff and Landing) program.
Cantor Fitzgerald notes that funding from Canadian federal programs likely mitigates potential liquidity concerns related to AIRO’s capital requirements.
In other recent news, AIRO Group announced plans to establish a new manufacturing and engineering development facility in the United States. This expansion aims to increase production capacity for the company’s RQ-35 ISR Drone, which has seen significant use in defense and security sectors. The company has not disclosed specific details about the location or investment amount for the new facility. Mizuho (NYSE:MFG) reaffirmed its Outperform rating on AIRO Group, maintaining a $31.00 price target, following the U.S. Defense Department’s announcement of reforms to drone procurement practices. Cantor Fitzgerald initiated coverage on AIRO Group with an Overweight rating and a $35.00 price target, citing the company’s potential as a defense technology growth opportunity. BTIG also initiated coverage with a Buy rating and a $26.00 price target, highlighting AIRO’s position in the Drones segment as a key growth driver. Mizuho, which also initiated coverage with an Outperform rating, noted that AIRO’s drone backlog exceeds $250 million, providing near-term revenue coverage. Additionally, the firm provided EBITDA estimates for the company, projecting $19.1 million for 2025 and $40.5 million for 2027.
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