Lithuanian order enhances AeroVironment visibility, says William Blair

The Lithuanian Ministry of National Defence last week signed a contract with the United States to procure Switchblade 600 anti-tank drone systems for the Lithuanian Armed Forces, William Blair analyst Louie DiPalma tells investors in a research note. The analyst says the deal, worth approximately $48M, represents the first major international order he’s seen for the Switchblade 600. On addition to the Switchblade 600, the United States will deliver AeroVironment’s smaller Switchblade 300 systems to the Lithuanian Armed Forces, he adds. DiPalma thinks the Lithuanian order "provides enhanced visibility" for AeroVironment’s fiscal 2023 guidance and is a positive sign for Switchblade momentum entering 2024. He anticipates upside in the shares over the next 12 months.