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Investing.com - Mizuho (NYSE:MFG) has initiated coverage on AIRO Group (NASDAQ:AIRO), currently valued at $557 million, with an Outperform rating and a price target of $31.00. According to InvestingPro analysis, AIRO appears undervalued at current levels, with impressive gross profit margins of nearly 67%.
The investment bank cited AIRO’s recent IPO, in which Mizuho served as joint-lead book-running manager, as providing sufficient capital to pursue opportunities across the company’s three core segments: Drones, Avionics, and Training. InvestingPro subscribers can access 7 additional key insights about AIRO’s financial health and market position.
Mizuho highlighted an additional "$8/share optionality" in Electric Air Mobility, supported by Canadian government and customer deposits totaling 497 aircraft and $1.2 billion in eVTOL backlog within the Jaunt Journey program.
The firm noted AIRO’s drone backlog exceeds $250 million, providing near-term revenue coverage with plans to expand into additional NATO countries and the U.S. market, which is expected to support segment revenue of approximately $200 million by 2028.
Mizuho established EBITDA estimates for AIRO of $19.1 million for 2025, $19.9 million for 2026, and $40.5 million for 2027, while noting the company is pursuing a total addressable market of approximately $315 billion.
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