Analyst Andre Madrid from BTIG reiterated a Buy rating on AeroVironment (AVAV – Research Report) and keeping the price target at $225.00.
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Andre Madrid has given his Buy rating due to a combination of factors that highlight AeroVironment’s strong financial performance and growth potential. The company reported a significant increase in its fourth-quarter earnings for FY2025, surpassing both consensus and internal estimates, largely driven by robust sales in the Loitering Munitions Systems segment. This segment alone saw an impressive year-over-year sales growth of 88%, contributing to a 40% overall sales increase for the quarter.
Furthermore, despite a slightly conservative outlook for FY2026, AeroVironment has demonstrated a consistent ability to meet or exceed its sales and EBITDA projections over the past three years. The company also maintains a high level of sales visibility into FY2026, which provides confidence in its future performance. Additionally, while there were initial concerns regarding a drop in backlog, these were alleviated with clarifications about program shifts, suggesting potential for future order increases. These factors collectively support the Buy rating, reflecting optimism about AeroVironment’s continued growth and profitability.
In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $240.00 price target.
AVAV’s price has also changed moderately for the past six months – from $160.120 to $193.280, which is a 20.71% increase.