AeroVironment still well position to outperform FY25 estimates, says RBC Capital

RBC Capital keeps an Outperform rating and $200 price target on AeroVironment after its Q4 results and FY25 guidance. The highlight of the quarter was the 74% growth in the Loitering Munitions Systems segment, though while the FY25 revenue guidance bracketed consensus, the company’s EBITDA guide was softer than expected, the analyst tells investors in a research note. AeroVironment remains well positioned to exceed the FY25 revenue estimates, even with greater competition, but incremental focus on margins can be a headwind for sentiment, the firm added.