AeroVironment's Strategic Acquisition and Technological Leadership Justify Buy Rating and Raised Price ObjectiveWe think that together, legacy AeroVironment and legacy BlueHalo position the new AV as an emerging defense tech prime with domain expertise, reputable solutions, and the ability to rapidly scale manufacturing to meet intensifying demand. We reiterate our Buy rating and raise our PO to $450 (vs. $300 prior) on higher growth and a stronger multiple. See inside for details. Directed energy and CUAS propel subsegment to $1bn+ We are highly impressed by the strong feedback we heard from systems integrators and industry partners for the BlueHalo portfolio – particularly for laser/directed energy (DE) and radio frequency (RF) counter drone (CUAS) solutions. Many highlighted that AV now possesses some of the “best targeting, tracking, and beam directing technology” in the industry.