AeroVironment price target raised to $275 from $200 at RBC Capital

RBC Capital raised the firm’s price target on AeroVironment (AVAV) to $275 from $200 and keeps an Outperform rating on the shares as part of a broader research note offering a positive outlook for “small cap defense tech” names. The sector is poised for continued outperformance, driven by the growth in FY26 defense spending, idiosyncratic positioning in growth markets – including space, missiles, missile defense, hypersonics, unmanned, and AI – as well as some company specific valuation mismatches, the analyst tells investors in a research note. RBC adds that it continues to favor AeroVironment within its peer group due to its valuation discount relative to peers and its enhanced competitive position post the Blue Halo acquisition.