Goldman Sachs Stays Bullish on AeroVironment (AVAV), Says Co. Was 3 Days Shy of a Huge Beat
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Price: $150.02 +2.26%
Rating Summary:
8 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
8 Buy, 10 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Goldman Sachs is maintaining its Buy and $38 price target on AeroVironment (NASDAQ: AVAV) despite a big Q3 "miss" after the close.
The firm notes timing matters a lot to the company and it clearly stated that $20 million of Raven and Puma revenue slipped to be booked on January 31, versus the quarter end of January 28 due to an administrative delay. Goldman said had this revenue been booked in the quarter, AVAV would have posted EPS of $0.50, or 20% above the consensus. This is reflected in the fact that the company did not change its full-year FY2012 revenue or EPS guidance.
Goldman is maintaining its Buy rating as it views AVAV as the only defense company they cover with significant growth potential. It has above-average ROIC and net cash on the balance sheet and they view it as a high potential M&A candidate.
While the stock has underperformed the S&P 500 by 20% ytd, they think in the next three months the company will report multiple new orders, beat 4QFY12 and guide FY2013 5%-10% above consensus.
Goldman trimmed FY12 EPS from $1.36 to $1.33 and FY13 unchanged at $1.60 and FY14 was raised form $1.90 to $2.00.
For an analyst ratings summary and ratings history on AeroVironment click here. For more ratings news on AeroVironment click here.
Shares of AeroVironment are down 4 percent in pre-open action to $26.
The firm notes timing matters a lot to the company and it clearly stated that $20 million of Raven and Puma revenue slipped to be booked on January 31, versus the quarter end of January 28 due to an administrative delay. Goldman said had this revenue been booked in the quarter, AVAV would have posted EPS of $0.50, or 20% above the consensus. This is reflected in the fact that the company did not change its full-year FY2012 revenue or EPS guidance.
Goldman is maintaining its Buy rating as it views AVAV as the only defense company they cover with significant growth potential. It has above-average ROIC and net cash on the balance sheet and they view it as a high potential M&A candidate.
While the stock has underperformed the S&P 500 by 20% ytd, they think in the next three months the company will report multiple new orders, beat 4QFY12 and guide FY2013 5%-10% above consensus.
Goldman trimmed FY12 EPS from $1.36 to $1.33 and FY13 unchanged at $1.60 and FY14 was raised form $1.90 to $2.00.
For an analyst ratings summary and ratings history on AeroVironment click here. For more ratings news on AeroVironment click here.
Shares of AeroVironment are down 4 percent in pre-open action to $26.
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