AeroVironment (AVAV) PT Lowered to $80 at Canaccord Genuity
Canaccord Genuity analyst Ken Herbert lowered the price target on AeroVironment (NASDAQ: AVAV) to $80.00 (from $86.00) while maintaining a Buy rating following the company's 4Q earnings report. AVAV reported revenues and EPS of $88M and $0.26, respectively. The bulk of the revenue decline was due to lower product sales compared to Q4/18.
Management will now be providing adjusted EPS to reflect the Pulse acquisition costs ($0.03) and intangible amortization ($0.09). The company has $197M of its FY20 revenues already in its backlog, which is consistent with prior years. AVAV expects much of the FY20 growth to be from its small UAS and TMS businesses. The guidance implies basically flat HAPS revenues in FY20, which is consistent with expectations.