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Yahoo
04-07-2025
- Business
- Yahoo
Can AeroVironment Stock Hit $301 in 2025?
As global tensions rise and battlefields go unmanned, defense tech is the new arms race. Drones are now mission-critical — not just in warfare, but in industries chasing speed, precision, and efficiency. The commercial drone market spans logistics, agriculture, oil, gas, and infrastructure, and is expected to reach a value of $355.55 billion by 2032. Now, with new executive orders signed by President Donald Trump to boost U.S. drone production and airspace security, the stage is set for a domestic surge. AeroVironment (AVAV) is riding the wave with precision. Known for its lethal-yet-lightweight drones like the Switchblade and Puma systems, the defense tech company has become an essential kit for modern militaries navigating volatile flashpoints. These battlefield-tested platforms have already proved their mettle in Ukraine, where low-cost drone warfare is reshaping military strategy. 'It's a Miracle': Nvidia CEO Says Their New Technology Takes 'AI Supercomputing to a Whole New Level' AI Isn't Just About Nvidia: 2 Rising Stars in the Artificial Intelligence Race UnitedHealth Stock Is One of the Worst-Performing S&P 500 Stocks in 2025. Should You Buy the Dip? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! That real-world validation has analysts bullish. Goldman Sachs analyst Anthony Valentini just initiated coverage on AVAV stock with a Street-high $301 price target. After a blazing rally amid stellar Q4 earnings and guidance, can AVAV soar even higher and hit Goldman Sachs' bullseye? Founded in 1971 with roots in human-powered and solar aircraft, AeroVironment has transformed into a powerhouse in unmanned aerial systems and next-gen defense tech. The company is now best-known for its battlefield-ready drones, which have become staples in modern military operations. As the world shifts toward automated warfare and drone-led intelligence, AeroVironment flies at the heart of it all. Wall Street has taken notice. With a market capitalization nearing $7 billion, AVAV stock has surged 60% year-to-date (YTD). Its recent run is even more stunning, up more than 128% in the past three months and 32% in just the past month as investors race to price in its strategic relevance in a rapidly evolving global defense landscape. AeroVironment delivered stellar fiscal Q4 results on June 24, reinforcing why the bulls are locked in. The company posted a 40% year-over-year (YOY) revenue surge to $275.1 million, crushing expectations. Earnings almost quadrupled to $1.61 per share from last year's $0.43 per-share profit, far ahead of the $1.44 consensus. The rally was not carried by one wing, either. Loitering Munitions segment revenue soared 87% during the quarter, MacCready Works revenue rose 24%, and Uncrewed Systems revenue advanced 9%. Momentum didn't stop at the quarter's close. Fiscal 2025 closed with record bookings of $1.2 billion and an order backlog of $726.6 million, up a massive 81.6% YOY, signaling deep demand and high visibility. Despite a modest $1.3 million operating cash outflow, the company's financials remain combat-ready, with $40.9 million in cash and long-term debt capped at just $30 million. From battlefield dominance to balance sheet discipline, the defense tech company is proving it can lead both in the air and on the books. But it was the forward view that turned heads. AeroVironment's fiscal 2026 guidance calls for revenue between $1.9 billion and $2 billion, with EPS between $2.80 and $3.00, driven in part by its BlueHalo acquisition. With geopolitical tensions rising and the U.S. entering a new phase of defense modernization, AeroVironment is not only participating in the shift but helping lead the charge. Meanwhile, analysts tracking the company anticipate fiscal 2026 EPS to dip 10.7% YOY to $2.93, before surging 44% to $4.23 in fiscal 2027. Brokerage firms responded quickly after the Q4 report. William Blair kept its 'Outperform' rating on AVAV stock, citing reduced Ukraine risk and strong growth visibility. Raymond James bumped its price target to $225, citing a robust fiscal 2025 finish and the BlueHalo acquisition's strategic edge. Stifel echoed the optimism, reaffirming a 'Buy" rating. BTIG made a splash among analysts, raising its target to $300, betting on drone warfare's rising relevance. But it was Goldman Sachs that delivered the boldest vote of confidence, initiating coverage with a 'Buy' rating and $301 target. Goldman Sachs is not just chasing short-term momentum — it's betting big on AVAV's staying power. Goldman Sachs views the war in Ukraine as a turning point, with AeroVironment's Switchblade and Puma systems becoming real-world proof that low-cost, high-impact tech can shift military doctrine. With the U.S. Department of Defense ramping up contracts and allies boosting their budgets, Goldman expects AeroVironment to ride operating leverage into 'higher profitability and cash generation." Analysts have deemed AVAV stock to be a 'Strong Buy' overall. Out of eight analysts covering the stock, seven recommend a 'Strong Buy' while one offers a 'Moderate Buy' rating. The mean target price has already been surpassed, a testament to AVAV stock's recent rally. However, Goldman Sachs' Street-high target of $301 suggests that shares can rise 22% from current levels. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
CNBC
30-06-2025
- Business
- CNBC
Goldman upgrades drone play as Ukraine war shows future of defense
Goldman Sachs says combat has been "redefined" by Russia's war on Ukraine, creating an opportunity for Kratos Defense and Security Solutions as the U.S. allocates more defense dollars for drones and missile systems. The firm upgraded the company, which specializes in unmanned systems and propulsion technology, to buy from neutral in a Sunday note, alongside a $52 per share price target. Goldman's forecast implies about 13% upside from Friday's $45.84 close. Shares have already surged nearly 74% in 2025. Analyst Anthony Valentini said that Russia's war on Ukraine exemplified the need for cheap yet efficient weaponry. At the same time, he said, the Department of Defense could have a bigger appetite for that type of munitions to further cut costs without sacrificing quality. This also fits with President Donald Trump's desire to trim spending, he said. "The Ukraine conflict proved that large volumes of low-cost, technologically acceptable systems can combat exquisite platforms at a fraction of the cost," Valentini said. "We believe defense is in the early stages of a major structural change that will drive disruptive defense tech companies taking a larger share of global defense spending." He added that Kratos has "been positioning itself for the future of warfare for years" by building low cost yet "technically acceptable" products that can be made at scale, which could benefit the stock. KTOS YTD mountain Kratos stock in 2025. "Kratos has strategically invested in areas of the defense supply chain that are critical to the future of warfare and are at a key inflection point," the analyst added. "Funding is finally coming for drone programs, turbo jet and turbo fan engines are in high demand for UAS [unmanned aircraft systems] and missile systems, and both C5ISR [Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance, and Reconnaissance] and space are continuing to grow at a fast clip." The analyst said he sees multiple channels for "significant growth." "The company has taken the approach of casting a wide net across many opportunities that are increasing in importance and ultimately demand," he said. "Individually, each of these opportunities have the potential to redefine the company and could change the financial framework significantly."
Business Insider
30-06-2025
- Business
- Business Insider
Planet Labs assumed with a Neutral at Goldman Sachs
Goldman Sachs analyst Anthony Valentini assumed coverage of Planet Labs (PL) with a Neutral rating and $4.60 price target Planet has a dominant position in the satellite imaging market, which is still in its infancy, but the company has struggled to hit consensus estimates and encountered longer than expected sales cycles as a result of a more challenging macro environment, the analyst tells investors in a research note. The firm says that while the company has addressed this situation with a restructured salesforce and go-to-market strategy, it is still unknown whether demand is strong enough for Planet Labs to fully scale. Don't Miss TipRanks' Half Year Sale Take advantage of TipRanks Premium for 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
