AeroVironment, Inc. (NASDAQ:AVAV) has entered a new phase of growth as its integration of BlueHalo strengthens its position in next-generation defense technologies.
Substantial Price Forecast Hike
Bank of America analyst Ronald J. Epstein reiterated a Buy rating on AeroVironment and raised the price forecast to $450 from $300, citing stronger growth visibility and an improved valuation multiple.
The bank said AeroVironment’s acquisition of SCDE (Space, Cyber, and Directed Energy) assets from BlueHalo is in strong shape.
Also Read: AeroVironment Stock Flat After Mixed Q1 Results: EPS Miss, Revenues Beat
Positive Assessment of BlueHalo Acquisition
Following its facility tour and meetings with AeroVironment management and customers at AUSA 2025, the analyst reaffirmed his positive assessment of the acquisition.
The bank believes the combined legacy AeroVironment and BlueHalo operations position the company as an emerging defense tech prime with domain expertise, reputable solutions, and scalable manufacturing capabilities.
The analyst cited strong industry feedback for AeroVironment’s laser and counter-drone systems, calling them among the best in targeting and tracking.
Revised Financial Projections and Growth Forecasts
The firm now forecasts AeroVironment’s Space & Directed Energy subsegment to deliver a ~35% CAGR over fiscal year 2026 to 2030, up from ~20% in the prior forecast, with revenues approaching $1 billion by 2030.
With DE and RF technologies still in early growth phases, analysts said AeroVironment’s investments position it to rapidly scale production. The company has expanded supplier agreements on the BADGER program and can more than double capacity across key Autonomous Systems lines.
Key next-generation technologies remain in the early stages of the S-curve, offering meaningful medium-term growth potential, the analyst noted.
The bank raised its price forecast to $450 from $300, citing faster growth and a higher valuation multiple of 10x versus 7x previously, to reflect the long-term expansion potential of AeroVironment’s SCDE business.
The firm projects revenue to rise from $1.99 billion in 2026 to $2.36 billion in 2027 and $2.81 billion in 2028, reflecting sustained double-digit growth. Adjusted earnings per share (EPS) are forecast at $3.65 in 2026, climbing to $4.00 in 2027 and $5.60 in 2028.
Price Action: AVAV shares were trading higher by 3.82% to $368.76 at last check Thursday.
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