Key insights
- AeroVironment secured a prototype agreement with the U.S. Army for its Switchblade 400 loitering munition. An analyst reiterated a Buy rating with a $293 price target, citing attractive valuation. The stock has a Strong Buy rating based on analyst recommendations and an average 1-year price target suggesting significant upside. This news has a slightly positive influence on the US equity market due to increased investor confidence in the defense sector.
AeroVironment, Inc. (NASDAQ:AVAV) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. Earlier in the month, the company said it had secured a prototype agreement from the U.S. Army to build, test, and deliver the Switchblade 400 loitering munition under the Low-Altitude Stalking and Strike Ordnance (LASSO) program.
Image by Amber Clay from Pixabay
The award has enhanced Switchblade 400’s reputation as a key component of the program, supporting the Army’s modernization efforts to deploy agile weapons. It also reflects the service’s confidence in the company’s ability to scale and positions it well as a likely long-term partner for the Army.
Following the news, Clear Street analyst Brian Dobson reiterated a Buy rating on AeroVironment, Inc. (NASDAQ:AVAV) on May 4, with a price target of $293. According to TipRanks, the firm noted the agreement in a research note to investors, and added that the company’s shares were ‘attractively valued’.
As of the close of business on May 8, the stock carries a Strong Buy rating based on 16 analysts’ recommendations. It has an average 1-year share price target of $302.29, representing an 80% upside.
AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robotic systems, and loitering munitions.
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