Where is AeroVironment (AVAV) Headed According to Wall Street?

AeroVironment, Inc. (NASDAQ:AVAV) is one of the best strong buy stocks to invest in right now. AeroVironment, Inc. (NASDAQ:AVAV) was initiated with an Overweight rating by KeyBanc on December 18 with a $285 price target. The firm expressed optimism on the company’s solid leverage to defense space and tech growth, industry-leading margin, differentiated product portfolio, expansion into advanced cUAS/interceptors, competitive moat from defense backlog and BlueHalo acquisition, and expansion into advanced cUAS/interceptors. KeyBanc justified the stock’s premium valuation with the company’s position as a high-quality defense tech leader, its idiosyncratic growth drivers, and a strong macro backdrop.

In another development, Bank of America Securities reaffirmed a Buy rating on AeroVironment, Inc. (NASDAQ:AVAV) on December 17 and retained the price target at $450. While the firm acknowledged the company’s recent stock decline, attributed primarily to delays in task order awards and margin compression, it views it as an overreaction, and stated that higher demand for the company’s products in both domestic and international markets is a positive indicator for its growth trajectory. In addition, it considers challenges to be temporary, including the effects of a government shutdown and integration complications from the BlueHalo acquisition.

Bank of America Securities also supported the optimistic outlook with the solid performance of AeroVironment, Inc.’s (NASDAQ:AVAV) SCDE products, particularly within the C-UAS portfolio, along with the promising lead of its BADGER phased array antenna and Locust Laser Weapon System.

AeroVironment, Inc. (NASDAQ:AVAV) is involved in the development, design, and production of multi-domain robotic systems and associated services for government agencies and businesses. The company operates through the following business segments: UnCrewed Systems, Loitering Munitions Systems, and MacCready Work.

While we acknowledge the potential of AVAV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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