RBC Capital raised the firm’s price target on AeroVironment to $230 from $200 and keeps an Outperform rating on the shares. With the recent $990M Army IDIQ award, the firm believes much of the focus for investors is now on the potential upside to the FY25 guidance and FY26 estimates. While timing of the orders under the IDIQ contract can be uncertain, RBC expects the company to raise its FY25 guidance, and believes sentiment on the stock is set to continue to improve even if margins are pressured on the mix shift.
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