AeroVironment Price Target Bumped Up By 15% At RBC Capital

RBC Capital analyst Ken Herbert raised the price target for AeroVironment, Inc. AVAV to $115 (an upside of 13.8%) from $100 while maintaining the Outperform rating on the shares.
The analyst states that AeroVironment received an $8 million contract for one system as part of the Future Tactical Unmanned Aerial System (FTUAS) program Increment 1. The initial contract will procure 1 system, which will include six aircraft, ground terminals, and control stations.
Related: US Army Picks AeroVironment JUMP 20 Unmanned Aircraft System For FTUAS Program
Herbert mentions that this award was largely expected, and the Increment 2 represents a more significant upside, but this contract is a positive.
The analyst continues to view AVAV as well positioned to benefit from the Ukraine conflict, with a full impact not yet fully reflected in estimates or stock price.
Price Action: AVAV shares are trading lower by 1.58% at $101.00 on the last check Monday.

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