Jefferies analyst Greg Konrad maintained a Buy rating on AeroVironment today and set a price target of $390.00.
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Greg Konrad has given his Buy rating due to a combination of factors including AeroVironment’s strong revenue growth and substantial bookings. The company has demonstrated a 21% organic increase in revenue for FYQ2, despite facing temporary challenges such as ERP transition and a government shutdown. This growth is supported by a robust $1.4 billion in bookings, translating to a 2.9 times book-to-bill ratio, and a significant backlog of funded and unfunded orders.
Furthermore, AeroVironment is expected to sustain a 15%+ compound annual growth rate over the medium term, driven by the conversion of its extensive pipeline and strong international demand. The company’s EBITDA, although impacted in the short term, is projected to recover and align with full-year guidance, indicating a positive outlook for profitability. The valuation is supported by anticipated revenue and EBITDA growth, providing a solid foundation for the Buy rating.
In another report released yesterday, BTIG also reiterated a Buy rating on the stock with a $415.00 price target.