RBC Capital Sees Sharp Upside In This Direct Beneficiary Of Russia's Invasion Of Ukraine - AeroVironment (NASDAQ:AVAV)

AeroVironment, Inc. AVAV has been upgraded to Outperform from Sector Perform, and the price target was raised to $100 (an upside of 17%) from $95 by RBC Capital analyst Ken Herbert.
The stock is up 44 % since the commencement of the Ukrainian war (compared to the small-cap defence sector's average growth of 15.3%); the analyst believes the acceleration in demand for AeroVironment's Switchblade signals a positive inflection point that should be sustained.
Herbert believes that the announced shipments to Ukraine will generate $50 million in revenue. Still, with the rapid opening of other foreign markets (20 countries have been approved as of today), a further upside is possible.
Although execution and timing remain challenges, Outperform rating and $100 price target are justified by the improved fundamental outlook, the analyst added.
Price Action: AVAV shares are trading higher by 4.15% at $85.27 on the last check Wednesday.