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Dougherty & Co Cites 10 Reasons to Be Bullish on AeroVironment (AVAV)

July 13, 2015 7:52 AM EDT
Get Alerts AVAV Hot Sheet
Price: $153.28 +2.68%

Rating Summary:
    8 Buy, 10 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Dougherty & Co analyst Andrea James reiterated her Buy rating and $35 price target on AeroVironment (NASDAQ: AVAV), citing ten investor day highlights to renew interest in the stock.

  1. An upcoming year of few surprises: Management reiterated the full year guidance that it issued June 30.
  2. Hints around commercial drones could drive valuation: AeroVironment confirmed that it is studying entering the consumer drone market, which would allow it to compete with Shenzhen, China-based DJI, which is privately valued at $10b according to media reports, and GoPro, (GPRO), valued at $7b. None of AV's valuation is currently tied to consumer drones
  3. Large unmanned aircraft systems would become critical if the US loses its satellites
  4. AV is now a Tier I automotive supplier, and growing
  5. New agriculture customers signed and in pilot programs
  6. Core small unmanned aircraft business is steady, adapting to maritime and micro-solutions
  7. BP is AV's only announced energy customer, but there are others: AV has "several other pilot" projects with large utilities for commercial drone usage. AV's public known customer is BP, but we believe AV may be working or talking with several others. On our short list would be Shell and ConocoPhillips, who are inquiring about using drones over energy operations in the Arctic. Also, we believe that energy companies are turning to AV for assistance with pipeline monitoring in the Mid East.
  8. Beyond the Switchblade, "tactical missile systems" has become a veritable revenue-producing category
  9. AV has a solution for the law enforcement market that appears ready to go
  10. AV has named a new permanent CFO

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 $27.16 yesterday.



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