Greg Konrad, an analyst from Jefferies, maintained the Buy rating on AeroVironment (AVAV – Research Report). The associated price target remains the same with $190.00.
Greg Konrad has given his Buy rating due to a combination of factors that highlight AeroVironment’s strong growth potential and strategic positioning. The company is targeting significant revenue growth, aiming to reach nearly $1 billion by FY26, with an even more ambitious target of $2 billion in revenue and $340 million in adjusted EBITDA when including the BlueHalo acquisition. This growth is expected to be driven by their Loitering Munitions Systems and Medium Unmanned Aerial Systems, which have a broad opportunity pipeline.
Furthermore, AeroVironment has successfully navigated recent market disruptions, including a strategic pivot away from Ukraine, which has been largely derisked. Despite these challenges, the company maintains a solid growth trajectory, supported by a strong backlog and expected awards. The acquisition of BlueHalo is set to double the company’s size and expand its total addressable market significantly, adding substantial capabilities in counter-UAS, space technologies, and electronic warfare, which further strengthens its position in the defense technology sector.
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