
AeroVironment (AVAV) Stock Forecast & Price Target
AeroVironment (AVAV) Analyst Ratings
Bulls say
AeroVironment Inc has demonstrated substantial growth in its financial performance, with total revenues for the second fiscal quarter reaching $473 million, reflecting a remarkable 151% year-over-year increase and an acceleration in organic revenue growth to 21%. Key categories such as C-UAS and Precision Strike contributed to a 38% year-over-year increase in sales, showcasing the company’s strong positioning in high-demand defense technologies. With expanding EBITDA margins and improving free cash flow, the company is well-positioned for continued revenue growth and potential multiple expansion, bolstered by anticipated revenue gains from its BADGER program and strong demand in both domestic and international markets.
Bears say
AeroVironment Inc has revised its non-GAAP EPS outlook downward, reflecting higher operational costs linked to the implementation of a new cloud-based ERP system and inefficiencies during this transition. Despite exceeding top-line expectations, the company experienced a significant decline in both adjusted gross margins and GAAP gross margins, leading to concerns about the unfavorable product mix and the impact of one-time costs from the BlueHalo acquisition. Furthermore, prolonged procurement cycles and increasing competition in the defense sector could hinder AeroVironment’s market share and revenue growth, raising the risk of further downward adjustments to revenue and earnings estimates.
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
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