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.
Piper Jaffray’s Troy Jensen upgraded AeroVironment from Neutral to Overweight raising the price target from $66 to $76.
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.
Shares of AeroVironment were up 4.41% to $59.58 at the time of publishing on Wednesday.
10 Biggest Price Target Changes For Wednesday
Earnings Scheduled For September 4, 2019
Latest Ratings for AVAV
|Jan 2019||Initiates Coverage On||Outperform|
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