AeroVironment’s Strategic Growth and Technological Advancements Drive Buy Rating

William Blair analyst Louie DiPalma has maintained their bullish stance on AVAV stock, giving a Buy rating on May 9.

Louie DiPalma has given his Buy rating due to a combination of factors that highlight AeroVironment’s strategic positioning and growth potential. The recent acquisition of BlueHalo for $4.1 billion has significantly expanded AeroVironment’s product offerings into critical areas like space technologies, counter-UAS, directed energy, and electronic warfare, aligning the company with future battlefield needs.
Additionally, the passage of a substantial defense reconciliation bill, which allocates significant funding for drone and counter-drone systems, presents a favorable environment for AeroVironment’s growth. The cancellation of the U.S. Army’s Future Tactical Uncrewed Aircraft System program is seen as a competitive advantage for AeroVironment’s JUMP 20 medium UAS, which has a growing international interest. Furthermore, AeroVironment’s introduction of innovative technologies like the Red Dragon loitering munition and BlueHalo’s Titan 4 counter-UAS solution underscores the company’s commitment to advancing its technological capabilities.

In another report released on May 9, RBC Capital also initiated coverage with a Buy rating on the stock with a $190.00 price target.