Investors should scoop up AeroVironment after the stock lost nearly half of its value in the past year, according to Raymond James. The firm upgraded the drone maker to outperform from market perform and set its 12-month price target at $210, implying a 49% increase from Wednesday’s close. Analyst Brian Gesuale said the high target is “merited given the recent strong flow of orders, improving backlog quality, strong end market demand, accelerating product momentum across [Autonomous Systems], and a cleaner post-SCAR setup.” AeroVironment is down 45% over the past 12 months as it faced several issues. The government shutdown in late 2025 halted funding, leading the company to lower its fiscal 2026 guidance . In March, it lost a key contract with the U.S. Space Force to build new antennas for aging military satellites. AVAV 1Y line AeroVironment last 12 months On Tuesday , however, the U.S. Army disclosed that it is negotiating its Enduring High Energy Laser program with the drone company, presenting a potential $500 million opportunity, according to Raymond James. The company has also secured a large, flexible contract with domestic security worth roughly the same amount. Gesuale believes AeroVironment’s order book can grow 20% quarter over quarter, making it an industry leader for counteracting drone swarms. “AV is one of the cleanest ways to invest in the modernization of warfare, with exposure to nearly every major defense growth vector,” he said. “We see a long runway for revenue growth, expanding margins, and increasing cash generation.” Raymond James rating aligns with Wall Street Consensus. According to LSEG, 18 out of the 22 analysts following the stock have buy or strong-buy ratings.
Buy the dip on this drone stock set for big gains ahead, says Raymond James
