AeroVironment, Inc. (AVAV) Maintains An Outperform Rating
February 08, 2010 2:49 PM
Analysts at Boenning & Scattergood have maintained an Outperform rating for AeroVironment, Inc. (NASDAQ: AVAV). Analysts have set a price target of $33 for the AeroVironment, Inc. stock.
Analysts believe that the company’s core UAS systems will be well supported in the coming years. Based on the assessment of the FY11 defense budget, analysts conclude that the company’s RQ-11 Raven has a total procurement and upgrade funding of roughly $524 million through FY15.
According to analysts, excluding AeroVironment’s $6 per share cash, the shares of the company are extremely cheap at the moment. The shares are currently trading at a multiple of 13.5x the 2011 EPS estimate of $1.35, which is much lower than the company’s historical multiple of above 23x.
