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."
What I find absolutely amusing is if you look through old posts of mine both here, Seeking Alpha, and a few others for the last 2-3 years, I have said that AVAV was a takeover candidate in the $40 range since they are in 2 of the most high growth categories in our economy going forward. Now the stock is at $30 and Goldman thinks the same thing. This is how I got rich, buying before the "smart" money starts recommending stocks I already own. I hope the GS clients feel they are getting their $$$ worth LOL
Funny people who get rich by playing card(stocks not being any different)are very good at keeping a poker face and never count their winnings at the table. I applaud your success by respect more if it was kept intact with humility.