Stifel cuts AeroVironment's PT on muted growth
BUZZ-Stifel cuts AeroVironment's PT on muted growth ** Stifel cuts price target on drone firm AeroVironment AVAV.O to $220 from $315; reiterates "buy" rating
** New PT still represents a 58% premium to stock's last close
** Shares of the company up ~30% at $181 premarket
** Brokerage says FY27 revenue growth guidance of ~10% may appear modest initially, but it includes roughly 5% headwinds each from the cancellation of the Satellite Communications Augmentation Resource (SCAR) program and the expected roll-off of Ukraine-related sales
** Stifel sees muted margin improvement and believes
"dour market mood across defense stocks" makes it unrealistic for the market to focus on estimates beyond next year
** Median PT of 20 brokerages covering the stock is $248 - data compiled by LSEG
** As of last close, AVAV down ~43% YTD
(Reporting by Megavarshini G. Somasundaram in Bengaluru)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))
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