
AeroVironment (AVAV) Stock Forecast & Price Target
AeroVironment (AVAV) Analyst Ratings
Bulls say
AeroVironment Inc. has demonstrated significant revenue growth, reporting a 151% year-over-year increase for FQ2, driven by strong sales in unmanned aircraft systems (UAS) and precision strike systems, with C-UAS sales reaching $174 million, a 38% increase year-over-year on a pro forma basis. The company's strategic mix of cost-plus and time-and-material (T&M) contracts, which grew to 34% in the first quarter of fiscal year 2026, complements its expanding backlog and bolstered defense budgets globally, indicating a solid foundation for continued growth. Additionally, improved EBITDA margins and free cash flow position AeroVironment for further financial upside and potential multiple expansion, reinforcing a positive outlook for the company's stock.
Bears say
AeroVironment Inc. has adjusted its non-GAAP EPS outlook downward from $3.60-$3.70 to $3.40-$3.55, attributing this change to increased costs stemming from a shutdown, resulting in a lowered FQ3 revenue estimate from $502 million to approximately $476 million. The company's GAAP gross margin has significantly dropped to 22% from 39% year-over-year, primarily due to one-time intangible amortization charges linked to the BlueHalo acquisition and an unfavorable service revenue mix. Additionally, concerns regarding extended procurement cycles, shifting defense priorities, and potential competitive losses to both emerging firms and legacy companies pose risks to AeroVironment's market share and growth prospects, indicating substantial challenges ahead.
This aggregate rating is based on analysts' research of AeroVironment and is not a guaranteed prediction by Public.com or investment advice.
AeroVironment (AVAV) Analyst Forecast & Price Prediction
Start investing in AeroVironment (AVAV)
Order type
Buy in
Order amount
Est. shares
0 shares