Goldman on AeroVironment (AVAV): 'We see this as a buying opportunity'

Goldman Sachs analyst Anthony Valentini reiterated a Buy rating and $429.00 price target on AeroVironment (NASDAQ: AVAV).

The analyst comments "AVAV reported a mixed quarter. Revenue was above consensus, adjusted EBITDA was below, and FCF was a use of cash. Legacy AVAV grew 21% in the quarter, and pro forma AVAV grew 10%, driven by strength in Switchblade, CUAS, and Space/Directed Energy products. EBITDA margin was impacted by unfavorable mix and the government shutdown and came in below our expectation in the quarter, but units produced in fiscal 2Q should be shipped in the back half of the year, leading to improved margins. We continue to see robust long term opportunities for AVAV as the company is well positioned to meet new government procurement priorities. The company continues to make progress on multiple large opportunities including P550, Switchblade, and BADGER, which should drive sustained revenue growth over the coming years. The stock has de-rated over the last several weeks on the momentum unwind, and noise from the quarterly results. We see this as a buying opportunity and remain Buy rated."

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 $245.25 yesterday.

You May Also Be Interested In

• Stripe, Advent In Talks To Buy Paypal - WSJ
• Jane Street Took $15 Billion Hit In July Tied To Situational Awareness - Reuters
• Full Circle Lithium closes $5.14M private placement