UPDATE: Goldman Sachs Downgrades AeroVironment to Neutral, Lowers PT to $25
Goldman Sachs has downgraded AeroVironment Inc. (NASDAQ: AVAV) from Buy to Neutral, and reduced price target from $29 to $25.
Goldman Sachs noted, "We downgrade AVAV to Neutral from Buy. We still believe in the long-term growth story, particularly in unmanned aerial vehicles. We lower FY2014/2015E to $1.65/$1.80 from $1.70/$1.90 on lower unmanned growth. We lower our target P/E and M&A premium derived 12-month price target to $25 from $29 given our lower estimates, but also as we now use a target multiple of 12X versus 15X previously, reflecting a heightened risk premium due to AVAV's Army exposure and revenue concentration. Risks include: DoD spending levels, EV adoption rates, earnings lumpiness."
AeroVironment closed at $21.16 on Thursday.
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|Mar 2014||CRT Capital||Maintains||Fair Value|
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