Market Overview

Piper Jaffray Upgrades AeroVironment On Valuation, Growth Opportunities

Piper Jaffray Upgrades AeroVironment On Valuation, Growth Opportunities

The recent pullback in AeroVironment, Inc’s (NASDAQ: AVAV) shares offers a “more compelling” entry point for investors, while the company has plans for various growth initiatives through fiscal 2020 and beyond, according to Piper Jaffray.

The Analyst

Piper Jaffray’s Troy Jensen upgraded AeroVironment from Neutral to Overweight raising the price target from $66 to $76.

The Thesis

AeroVironment is poised to benefit from a shift in the U.S. defense budget toward unmanned aircraft and, given the company’s recent focus on overseas expansion, its international defense sales could grow faster than domestic sales, Jensen said in the note.

He added that there is high visibility into AeroVironment’s performance for the rest of fiscal 2020, as 75% of its guidance is already either booked or in backlog.

Citing the successful initial launch of HAWK30 as an important milestone under AeroVironment’s HAPSMobile joint venture with Japan's SoftBank Group Corp (OTC: SFTBF), the analyst said that this provides visibility over the next several quarters and represents “a significant long-term opportunity.”

AeroVironment launched Puma LE (Long Endurance) earlier this week. Although this launch was largely anticipated, it extends AeroVironment’s leadership in the UAV (Unmanned Aerial Vehicle) space and Puma LE could be “an important new product cycle for the company,” Jensen wrote.

Price Action

Shares of AeroVironment were up 4.41% to $59.58 at the time of publishing on Wednesday.

Related Links

10 Biggest Price Target Changes For Wednesday

Earnings Scheduled For September 4, 2019

Latest Ratings for AVAV

Jan 2021StifelDowngradesBuyHold
Jan 2021BairdUpgradesNeutralOutperform
Dec 2020Canaccord GenuityMaintainsBuy

View More Analyst Ratings for AVAV
View the Latest Analyst Ratings


Related Articles (AVAV)

View Comments and Join the Discussion!

Posted-In: Piper Jaffray Troy JensenAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at