UPDATE: Goldman Sachs Upgrades AeroVironment to Buy By David Johnson Benzinga Staff Writer February 06, 2012 9:27 AM Symbols: AVAV Tags: Goldman Sachs Posted in: Analyst Color, Upgrades, Price Target, Pre-Market Outlook, Analyst Ratings (less) Symbols: AVAV Tags: Goldman Sachs Posted in: Analyst Colo (…more) inShare0 Share0
Goldman Sachs raises its rating on AeroVironment (NASDAQ: AVAV [FREE Stock Trend Analysis]) to Buy from Neutral and raises its price target to $38 from $32 a share as the company is a top pick in the improved-outlook Defense sector.
Goldman Sachs notes, "We have raised our Defense coverage view to Neutral, and AVAV is our top pick in the group. We have long thought AVAV was an M&A candidate, but given it now trades close to in line with Defense primes, we believe M&A is more likely. On a stand-alone basis, AVAV is one of few Defense companies exposed entirely to growth markets (UAVs and EV charging), has above-average CROCI and net cash on the balance sheet, upside to consensus, new order catalysts ahead, and attractive valuation. AVAV shares are down 9% YTD (vs. S&P up 7%) providing a good entry point."