Piper Jaffray Upgrades AeroVironment (AVAV) to Overweight

Piper Jaffray upgraded AeroVironment (NASDAQ: AVAV) from Neutral to Overweight with a price target of $28.00 on valuation, saying they believe we have reached a drone inflection.

Analyst commented, "We are upgrading shares of AeroVironment (AVAV) from Neutral to Overweight as we believe AVAV has pulled back to an attractive entry point and feel the industry is approaching an inflection for unmanned aerial systems (UAS). Although we are bullish on all the company’s numerous growth initiatives, our upgrade is also influenced by our confidence in the company’s UAS Commercial opportunity after attending one of the bigger North American UAS Conferences last week. Although we believe it will take time (1 -2 years) until the company’s Commercial business and other growth opportunities begin to generate meaningful revenues, we believe AVAV’s risk/reward looks attractive for one of the few publicly traded names with drone exposure. We also believe an appetite for drone exposure within the investment community could help drive the stock higher given the scarcity of publicly traded drone companies."

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 $20.44 yesterday.

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