AeroVironment’s longer-term upside to receive more credit, says RBC Capital

RBC Capital analyst Ken Herbert keeps an Outperform rating and $200 price target on AeroVironment but notes that the company’s long-term outlook issued at its investor day event this week will receive more credit from investors than the initial and “conservative” FY25 guidance given when it released Q4 results. The company was successful in demonstrating its capabilities and how it has improved the quality of its Loitering Munitions Systems product line, the analyst tells investors in a research note, also citing its targeted growth of its current $12B total addressable market to about $30B as it doubles-down on its core capabilities while expanding to adjacent markets.