Analysts Slash AeroVironment Price Target Post Q2 Results

Analysts slashed their price targets on AeroVironment Inc AVAV following the company's downbeat outlook.

• Related Content: AeroVironment Stock Plunges After Mixed Q2 Results, FY22 Outlook Cut.
• RBC Capital analyst Ken Herbert lowered the price target to $65 (an upside of 4%) from $95 and maintained a Sector Perform rating on the shares. 
• Herbert cites the Q2 earnings miss and "materially lowered" FY22 outlook, reflecting headwinds around "timing, COVID, and supply chain." 
• The analyst says the reaction in the stock price was also "significant" as shares fell 27% yesterday, but he remains "cautious" on AeroVironment's performance in the second half of FY22 and FY23.
• Canaccord analyst Austin Moeller downgraded AeroVironment to Hold from Buy and lowered the price target to $64 (an upside of 2.5%), from $140, after management substantially cut its prior FY22 guidance in what he calls "a surprise move." 
• Moeller mentions that the management attributed the 21% cut in projected revenue and 42% cut for adjusted EBITDA to a combination of supply chain delays, staffing shortages, and ongoing delays in the FY22 defense budget.
• He added that the team was "rather opaque" on timing when the current supply chain and staffing challenges would improve.
• Baird analyst Peter Arment lowered the price target to $72 from $120 and maintained an Outperform rating on the shares.
• Arment said although they reported a modest 2Q22 EPS beat, the focus is entirely on the guidance reset as supply chain shortages, and CR delays constrain second-half growth. 
• He said the headwinds result in ~$120 million hits to the top-line, with product-oriented businesses most impacted.
• Price Action: AVAV shares are trading higher by 7.74% at $62.47 on the last check Wednesday.