Goldman Sachs Downgrades AeroVironment (AVAV) to Neutral on Weak Order Trends

November 9, 2012 8:22 AM EST Send to a Friend
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Price: $32.33 -0.77%

Rating Summary:
    2 Buy, 12 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 22 | New: 13
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Goldman Sachs downgraded AeroVironment (NASDAQ: AVAV) from Buy to Neutral with a price target of $25.00 (from $29.00) on weak recent order trends and lack of catalysts.

The analyst comments, "We still believe in the long-term growth story, particularly in unmanned aerial vehicles. We also still believe AVAV is a potential acquisition candidate still. But recent order trends have been weak which creates risk to near-term numbers. And we now believe we underestimated the appropriate risk premium for short-cycle, Armydriven Defense companies, even though AVAV has consistently outgrown peers despite the onset of the war effort withdrawal and broader Defense spending declines."


For an analyst ratings summary and ratings history on AeroVironment click here. For more ratings news on AeroVironment click here.

Shares of AeroVironment closed at $21.16 yesterday.




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