Stifel reaffirms AeroVironment stock rating on strong quarterly results

Investing.com - Stifel maintained its Buy rating and $240.00 price target on AeroVironment (NASDAQ:AVAV) stock following the company’s better-than-expected fourth-quarter fiscal 2025 results. According to InvestingPro data, the company, currently valued at $8.78 billion, is trading at a premium valuation with a P/E ratio of 163.75.

AeroVironment reported revenue of $275 million for the quarter, exceeding Stifel’s estimate of $235 million and the consensus forecast of $243 million. The company’s EBITDA reached $62 million, surpassing Stifel’s projection of $53 million and consensus expectations of $55 million.

The revenue outperformance was primarily driven by the company’s Loitering Munitions segment, which generated $138 million in revenue, significantly above Stifel’s estimate of $95 million.

AeroVironment also provided guidance for fiscal year 2026, which includes the impact of its BlueHalo acquisition. The outlook aligned with Stifel’s pre-earnings estimates and information previously disclosed in an S-4 filing earlier this year.

Stifel expressed positive sentiment toward management’s plans to accelerate capital expenditure spending, noting that investors may begin to view organic growth investments in new defense technology more favorably.

In other recent news, AeroVironment Inc. reported impressive fourth-quarter earnings for fiscal year 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.61, which exceeded the forecasted $1.40, marking a 15% surprise. Revenue also outperformed projections, reaching $275.1 million against an anticipated $242.14 million, reflecting a 13.61% surprise. AeroVironment’s fiscal year revenue reached a record $821 million, a 14% increase year-over-year. Additionally, the company completed its acquisition of BlueHalo, further strengthening its market position.

Looking ahead, AeroVironment provided fiscal 2026 guidance, projecting revenue between $1.9 billion and $2.0 billion, with adjusted EBITDA expected to range from $300 million to $320 million. The company anticipates strong growth in its Autonomous Systems and Space, Cyber, and Directed Energy segments. Despite potential challenges such as supply chain disruptions and increased competition, AeroVironment remains optimistic about its future opportunities. The company’s strategic focus on innovation and market expansion is underscored by recent product launches, including new autonomous and attack drones.

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