UPDATE: Goldman Sachs Downgrades AeroVironment to Neutral, Lowers PT to $25

Goldman Sachs has downgraded AeroVironment Inc.

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.