Build Position on Weakness in AVAV Stock
Analysts at Dougherty & Company maintain their “buy” rating on AeroVironment Inc (NASDAQ: AVAV). The target price for AVAV is set to $34.
According to Dougherty & Company, AVAV is unlikely to meet the consensus expectations for 2Q09 due to lower-than-expected demand for its UAS Raven products from the US military. The lower demand is likely to affect AeroVironment’s Q2 margins due to a less favorable product mix.
Investors may consider building a position in AVAV’s stock on weakness, Dougherty & Company says. There are a number of positive catalysts forthcoming for AVAV’s stock, including the expected shipment of AV and Raven DDL products to the US military following the US government’s budget. AVAV’s spares and repairs revenues are expected to rise in the forthcoming quarters due to the planned deployment of 30,000 additional troops to Afghanistan.
