UPDATE: Sterne Agee Upgrades AeroVironment to Neutral

In a report published Wednesday, Sterne Agee Group upgraded its rating on AeroVironment AVAV from Underperform to Neutral. Sterne Agee noted, “We are upgrading AVAV to Neutral from Underperform as the its several ‘irons in the fire' are creating new contracting opportunities. 2Q13 results beat expectations as the majority of an international order fell in 2Q13 instead of 3Q13. AVAV reiterated FY13 guidance for which 79% is identified. Further, a $1 billion UAS RFP is expected to be awarded in a few months. AVAV remains in solid position given its historical dominance of the UAS market, especially with the acquisition of Tier II UAS.” AeroVironment closed on Tuesday at $20.26.