Goldman Asserts Buy Rating on AeroVironment, Inc. (AVAV) Impressed by Underlying Growth

AeroVironment, Inc. (NASDAQ:AVAV) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 11, analysts at Goldman Sachs reiterated a Buy rating on ​AeroVironment, Inc. (NASDAQ:AVAV) and set a $429 price target. The investment bank remains confident about the company’s outlook following an impressive second quarter of fiscal 2026.

The company delivered a 151% year-over-year increase in revenue to $472.5 million, compared with $188.5 million in the same quarter last year. The increase was driven by higher product sales of $173.8 million and higher service revenue of $110.2 million. Gross margin in the quarter improved to $104.1 million from $73.6 million in the same period last year.

According to Goldman Sachs, AeroVironment is on the cusp of robust long-term opportunities as it continues to meet new government procurement priorities. The investment bank expects the P550, Switchblade, and BADGER programs to drive sustainable revenue growth.

On December 11, Jefferies analyst Greg Konrad shared similar sentiments, reiterating that AeroVironment is a Buy with a $390 price target. The strong Buy is in response to strong revenue growth and substantial bookings, as it has demonstrated a 21% organic revenue increase. Likewise, the company is expected to sustain a 15% compound annual growth rate over the medium term, driven by its extensive pipeline and strong international demand.

​AeroVironment, Inc. (NASDAQ:AVAV) is a prominent defense technology company that designs, develops, and manufactures unmanned aerial systems (UAS), unmanned ground vehicles, small missile systems, and, more recently, has expanded into other autonomous systems and counter-UAS systems through the acquisition of BlueHalo. Its primary customers are the U.S. military and other government agencies.

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Disclosure: None. This article is originally published at Insider Monkey.