AeroVironment intraday pullback ‘appears overdone,’ says BTIG

BTIG notes that Space News released an article indicating that the U.S. Space Force would be recompeting the Satellite Communications Augmentation Resource program, which AeroVironment (AVAV) unit Blue Halo had won in 2022. The firm, which still believes AeroVironment is in a strong position to capture future phased array demand, argues that the intraday pullback “appears overdone” for a contract that was initially expected to make up about 6% of annual sales. The firm, which maintains its Buy rating, awaits further details to come when AeroVironment reports fiscal Q3 earnings on March 10 to address its estimates.