In this article, we highlight 14 Best Aerospace and Defense Stocks to Buy According to Wall Street Analysts.
Volatile geopolitical times present some of the best investment opportunities in the aerospace and defense industry. That has been the case in 2025 amid the tensions in the Middle East, compounded by the unending war between Russia and Ukraine. The prospect of the US invading Venezuela has also sparked interest in defense stocks.
Consequently, the S&P Aerospace and Defense Select Industry Index has outperformed, gaining 40% year to date. It is well ahead of the broader S&P 500 index, which is heading into the new year up 16%. Amid the high year-to-date gains, there are already concerns that valuations in the aerospace and defense sector are near the high end. That might not be the case, as data suggests there is still some upside.
Global air traffic data suggest a 5.8% boost in air passenger traffic according to the International Air Transport Association. The growth comes amid robust demand for passenger and defense-linked aircraft, which is expected to support the aerospace industry.
On the other hand, the One Big Beautiful Bill Act is expected to inject $156.2 billion in new funding for national security and defense priorities. With defense and military spending expected to top $849 billion, new opportunities are cropping up that companies should capitalize on.
“The OBBB Act provides over $150 billion in defense funding,” said Michael Martin, vice president of market strategy at Trading Block, a Chicago-based digital brokerage firm. “This covers shipbuilding, aircraft, missile defense, weapons and munitions, and more.” He added, “There’ve been a few non-war times when the defense sector has gotten such a boost.”
According to Tony Bancroft, portfolio manager and aerospace and defense analyst at Gabelli Funds, increased government contracts, rising global defense budgets, and a post-pandemic rebound in commercial air travel create a favorable investment environment.
Our Methodology
To compile our list of Best Aerospace and Defense Stocks to Buy According to Wall Street Analysts, we used Finviz screener and CNN as our sources. We settled on companies with significant exposure to the aerospace and defense sectors. We further trimmed our list, focusing on stocks with upside potential of more than 20% (as of December 17) and that are popular among elite hedge funds in the third quarter of 2025. Finally, we ranked the stocks in ascending order by upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Aerospace and Defense Stocks to Buy According to Wall Street Analysts
14. Northrop Grumman Corp. (NYSE:NOC)
Number of Hedge Fund Holders: 59
Analyst Upside Potential: 20.55%
Northrop Grumman Corporation (NYSE:NOC) is one of the best aerospace and defense stocks to buy, according to Wall Street analysts. On December 12, Citi initiated coverage of Northrop Grumman with a Buy rating and a $654 price target. The firm also began coverage on 24 aerospace and defense names, pointing to strong long-term trends across commercial aviation, defense, shipbuilding, and space. Citi said these dynamics could create a trillion-dollar company within five years, highlighting GE Aerospace as a potential contender. RTX was named its top megatrend pick, while Boeing was viewed as a promising turnaround. Analysts expect momentum to build in the fourth quarter and continue into early next year.
On December 9, the company secured a $100 million contract from the US Department of War. The contract is for missile weapon systems development and production for work on the Stand-in Attack Weapon SiAW and Advanced Anti-Radiation Guided Missile (AARGM-ER) systems.
The SiAW is an air-to-surface missile system designed to disrupt the enemy’s anti-access/area denial environment. Northrop is to develop the weapon system with a Weapon Open Systems to enable future upgrades. The $100 million contract will also cover active seeker components test and evaluation support.
Northrop, in partnership with the US Air Force, has already completed a separation test in the Stand-In Attack Weapon system from an F-16 aircraft. The test aimed to validate the missile system’s flight safety and aerodynamic performance.
“The separation test of SiAW from the F-16 is intended to provide the United States Air Force validation of the weapon’s safe separation characteristics and also generate invaluable data for optimizing its performance,” said Col. Gary E. Roos, senior materiel leader, Adaptive Weapons Division, Air Force Life Cycle Management Center.
Northrop Grumman Corp. (NYSE:NOC) is a global technology company specializing in aerospace and defense. It creates advanced systems, products, and services for space, air, cyber, and defense, including military aircraft, satellites, and autonomous systems.
13. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 106
Analyst Upside Potential: 20.72%
The Boeing Company (NYSE:BA) is one of the best aerospace and defense stocks to buy, according to Wall Street analysts. On December 16, Boeing landed a $930.77 million U.S. Navy contract to extend the service life of up to 60 F/A‑18 E/F Super Hornets. The agreement covers upgrades that will push the aircraft’s lifespan from 6,000 to 10,000 flight hours and add Block III avionics capabilities.
Work will be split between San Diego and San Antonio, each handling 44%, with the remaining 12% completed in St. Louis. The program runs through November 2028. No funds were obligated at the time of award; instead, financing will be assigned as individual orders are issued. The Naval Air Systems Command in Patuxent River, Maryland, is overseeing the contract.
On December 12, Moody’s reaffirmed Boeing’s Baa3 senior unsecured rating and revised its outlook to stable after the company completed its acquisition of Spirit AeroSystems. The agency pointed to improvements in quality and safety, strong liquidity of about $29 billion, and Boeing’s solid position in both commercial and defense markets. Boeing’s backlog stood at $636 billion at the end of September, equal to roughly eight to nine years of production.
Moody’s said Boeing is likely to prioritize balance sheet repair, with significant debt coming due in 2026 and 2027. Free cash flow is expected to turn positive in 2026 and improve in the years that follow. The Spirit deal was considered ratings-neutral, aided by Boeing’s repayment of $3 billion of Spirit’s secured debt, while governance scores were raised to reflect better oversight and production discipline.
Separately, on December 12, Citi initiated coverage of Boeing with a Buy rating and a $265 price target, calling the company a compelling large‑cap turnaround play amid long‑term aerospace “megatrends.”
The Boeing Company (NYSE:BA) is a global aerospace leader that designs, manufactures, and supports commercial jetliners, military aircraft, satellites, missile defense systems, and space technologies. The company operates through three divisions: Commercial Airplanes; Defense, Space & Security; and Global Services, which provides maintenance, engineering, supply chain, training, and digital solutions to customers worldwide.
12. L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 59
Analyst Upside Potential: 20.85%
L3Harris Technologies (NYSE:LHX) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 16, analysts at Morgan Stanley upgraded L3Harris Technologies (NYSE:LHX) to an Overweight from Equalweight and raised the price target to $367 from $350.
The upgrade is in response to the investment bank’s touting of strong operating momentum heading into 2026. L3Harris Technologies boasts of a favorable positioning for the future of warfare with reduced disruption risk from emerging defense technology competitors. Likewise, the investment bank is confident in its platform-agnostic approach, which is not subject to significant changes, unlike its competitors’.
Consequently, Morgan Stanley expects the company to capitalize on Golden Dome opportunities heading into 2026 and to propose improvements in Aerojet output. The company has already secured a follow-on production contract worth $200 million to manufacture Guided Multiple Launch Rocket System Insensitive Munition propulsion units. It has already initiated construction of an Arkansas Advanced Propulsion Facility focused on increasing manufacturing capacity by sixfold for various missile and defense systems.
L3Harris’ subsidiary, Aerojet Rocketdyne, missile solution president Scott Alexander said: “This GMLRS IM contract demonstrates L3Harris’ expertise in missile propulsion technology and its commitment to delivering high-performance, reliable propulsion solutions for military operations.
L3Harris Technologies, Inc. (NYSE:LHX) is an aerospace and defense technology company that provides advanced solutions for military, government, and commercial customers, focusing on mission-critical needs in air, land, sea, space, and cyber domains. It develops and supplies high-tech systems, including avionics, electronic warfare, cyber security, and unmanned systems.
11. Cadre Holdings, Inc. (NYSE:CDRE)
Number of Hedge Fund Holders: 11
Analyst Upside Potential: 21%
Cadre Holdings, Inc. (NYSE:CDRE) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. Cadre Holdings, Inc. (NYSE:CDRE) commands a Strong Buy consensus rating on Wall Street. The average price target on the stock is $51, implying 21% upside potential from current levels.
On November 19, the company’s subsidiary Med-Eng LLC secured a five-year contract worth $50 million from the US Department of Defense. The subsidiary secured the contract after a competitive five-year development program to improve exposure identification methods.
The contract is for the provision of blast-exposure monitoring systems designed to track exposures from heavy weapons and explosive breaching in combat and training environments. The systems are designed to enhance the US Military’s ability to monitor, track, and evaluate blast overpressure exposure events. The company is to make the first delivery under the contract next year.
“We are incredibly proud to be awarded this contract, which is a testament to Med-Eng’s ability to develop best-in-class systems to aid in the mitigation of threats, support operational requirements, and keep users safe in the line of duty. I want to thank our talented team members for their dedication, diligence, and relentless focus on excellence, which made this achievement possible. We look forward to delivering on this program in 2026 and exploring the possibility of how this new capability can be leveraged to support other frontline personnel,” Cadre President Brad Williams commented.
Cadre Holdings, Inc. (NYSE:CDRE) designs, manufactures, and distributes critical safety and survivability products, like body armor, EOD (explosive ordnance disposal) gear, duty equipment, and communication tools, for first responders (police, fire, EMS) and federal agencies globally, operating through strong brands like Safari land, Med-Eng, and Bianchi to equip users for dangerous situations and provide distribution for related gear like uniforms, optics, and firearms.
10. TransDigm Group Incorporated (NYSE:TDG)
Number of Hedge Fund Holders: 68
Analyst Upside Potential: 23.45%
TransDigm Group Incorporated (NYSE:TDG) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. TransDigm Group Incorporated (NYSE:TDG) commands a consensus Buy rating on Wall Street. The average price target for the stock is $1568.46, implying 23.45% upside from current levels.
The consensus bullish rating coincides with Bank of America Securities analyst Ronald Epstein reiterating a Buy rating on the stock on November 17. According to the investment bank, the company boasts a robust business model and growth potential. Its performance is driven by strong pricing power and disciplined execution in the commercial aerospace aftermarket.
The company’s outlook also remains positive following the addressing of OEM destocking concerns. Bank of America expects opportunities in the defense sector to continue being a growth driver for revenue and cash generation. Strategic focus on mergers and acquisitions, along with effective capital deployment, affirms the company’s ability to generate long-term value.
The investment bank also expects the aftermarket and defense sectors to drive TransDigm’s margin opportunities through 2026. Improved visibility into original equipment manufacturer operations and stable production rates at Boeing and Airbus strengthen the long-term outlook. Strong cash generation and liquidity position should allow the company to pursue acquisitions to unlock new growth opportunities.
TransDigm Group Incorporated (NYSE:TDG) designs, produces, and supplies highly engineered aircraft components, systems, and subsystems for nearly all commercial and military aircraft. It focuses on critical parts like pumps, valves, actuators, seatbelts, and flight controls, often through a strategy of acquiring specialized, market-leading aerospace companies with proprietary products and strong aftermarket sales.
9. Loar Holdings Inc. (NYSE:LOAR)
Number of Hedge Fund Holders: 29
Analyst Upside Potential: 25.42%
Loar Holdings Inc. (NYSE:LOAR) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 12, Citi analyst John Godyn initiated coverage of Loar Holdings Inc. (NYSE:LOAR) with a Buy rating and an $83 price target.
According to the research firm, Loar Holdings is one of the companies well-positioned to benefit from megatrends across the commercial aerospace, defense, and space sectors. The research firm expects the trends to create a company with a market cap of at least $1 trillion. Noah Poponak shares similar sentiments, having initiated coverage of the stock with a Buy rating on November 25.
According to the Goldman Sachs analyst, Loar Holdings is an early-stage, high-quality compounder in the aerospace aftermarket sector, standing out for its strong financial profile. Consequently, the analyst has a $91 12-month price target on the stock, asserting confidence in the company’s growth trajectory and strategic positioning.
The wave of positive ratings on Wall Street follows an impressive third-quarter report, whereby the company benefited from strong demand in the defense and aerospace sectors. The company posted record net sales of $126.8 million, a 22.4% year-over-year increase, and also recorded record adjusted EBITDA of $49.1 million.
Loar Holdings Inc. (NYSE:LOAR) is a diversified manufacturer and supplier of niche components for the aerospace and defense industries, creating specialized parts like seatbelts, fire barriers, braking systems, sensors, and control devices for commercial, business, and general aviation.
8. StandardAero, Inc. (NYSE:SARO)
Number of Hedge Fund Holders: 44
Analyst Upside Potential: 26.49%
StandardAero, Inc. (NYSE:SARO) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 10, StandardAero, Inc. (NYSE:SARO)’s board of directors approved a $450 million stock repurchase program. The company is to conduct the program subject to market conditions and other factors.
The repurchase program underscores the company’s commitment to shareholder value by providing a tool to allocate capital to accretive investments. It also affirms the company’s financial position, allowing it to focus on growth opportunities, facilities, technology, and capabilities in addition to the buyback.
On November 24, Bernstein SocGen Group reiterated its Outperform rating on StandardAero, with a $39 price target, even as the company faces cash flow concerns. According to the research firm, the company’s growth trajectory remains intact, driven by high demand for MRO (Maintenance, Repair, and Overhaul) services and its strong market position.
Additionally, the company has negotiated contractual changes with customers who will purchase materials directly from OE suppliers. While the modification is expected to reduce revenue by $300-$400 million, profit margins are expected to improve. Contractual restructuring should also have a positive impact on cash flow through reduced inventory.
StandardAero, Inc. (NYSE:SARO) is a primary global independent provider of Maintenance, Repair, and Overhaul (MRO) services for aircraft engines and components, serving business, commercial, military, and helicopter markets.
7. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 36
Analyst Upside Potential: 33.25%
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 11, analysts at Truist Securities reiterated a Buy rating and a $125 price target.
The positive stance follows the company’s opening of a new 10,000-square-foot facility in Vancouver, British Columbia, for PT6A and PT6T engine overhaul operations. It marks the third time that the company has expanded in Canada in pursuit of growth opportunities. The new state-of-the-art facility is designed to enhance operational efficiency and provide the infrastructure needed to meet the industry’s evolving needs.
The Vancouver facility is to strengthen the company’s operations in Bristow, Oklahoma, while enabling expanded capabilities for Canadian operators. There are also plans to add fixed-wing version PT61 model services. The expansion also underscores the company’s focus on delivering cutting-edge solutions as it seeks to drive excellence across all operations.
“This move will create seemingly endless possibilities with regards to expansion, employment and in-house capabilities. We are fortunate to have many long-standing Bell Medium customers in Canada, which operate the PT6T model engines. Our goal is to add the fixed wing version (PT6A models) to our quiver in the near future,” said Dave Wark, Director of Kratos MRO Canada.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and provides advanced, affordable technology for U.S. national security. It focuses on unmanned systems (drones like the Valkyrie), hypersonic systems, satellite cybersecurity, missile defense, and jet engines, serving defense, allies, and commercial sectors.
6. Innovative Solutions and Support, Inc. (NASDAQ:ISSC)
Number of Hedge Fund Holders: 10
Analyst Upside Potential: 38.66%
Innovative Solutions and Support Inc. (NASDAQ:ISSC) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 18, Innovative Aerosystems reported strong fourth‑quarter and full‑year fiscal 2025 results, underscoring solid execution across its commercial, business aviation, and defense programs. Fourth‑quarter revenue rose 44.6% to $22.2 million, supported by higher throughput and contributions from recently acquired Honeywell product lines.
Gross margin improved to 63.2%, and net income more than doubled to $7.1 million. For the full year, revenue climbed 78.6% to $84.3 million, while Adjusted EBITDA increased to $24.8 million. The company ended the year with $21.7 million in net debt and total liquidity of $77.7 million.
Management described fiscal 2025 as a year of meaningful operational progress, driven by investments in manufacturing capacity, engineering, sales, and digital infrastructure. The company completed its rebranding to Innovative Aerosystems and advanced several strategic initiatives, including integrating F‑16 production into its Exton facility and rolling out a new ERP system. A major milestone was the launch of the Liberty Flight Deck, a customizable cockpit platform designed for commercial, cargo, business aviation, and military aircraft, which drew strong interest at its October unveiling.
Looking ahead, the company expects to build on the foundation laid over the past three years. Backlog ended the year at $77.4 million, supported by steady order activity across core programs. Innovative Aerosystems reaffirmed its long‑term goal of reaching $250 million in revenue and a 25–30% Adjusted EBITDA margin by fiscal 2029, supported by both organic growth and targeted acquisitions.
Innovative Solutions and Support, Inc. (NASDAQ:ISSC) designs, manufactures, and services advanced cockpit systems and avionics for military, commercial, and business aircraft. It also offers integrated flight displays, air data systems, auto throttles (ThrustSense), and engine monitoring.
5. Leonardo DRS Inc. (NASDAQ:DRS)
Number of Hedge Fund Holders: 29
Analyst Upside Potential: 38.89%
Leonardo DRS Inc. (NASDAQ: DRS) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 16, the company confirmed the first on-orbit test of its revolutionary multi-channel, software-defined radio. It marks a significant milestone in validating the technology’s ability to secure US military satellite data transport at the tactical edge.
The eXtended Crypto Module3-Space (XCM3-Space) is designed for the next generation of crypto and multi-channel SDR capabilities. Therefore, it can address emerging cyber and electronic warfare threats to military satellite data transport.
“Secure, flexible satellite data transport is the backbone of modern military operations,” said Larry Ezell, senior vice president and general manager of Leonardo DRS Airborne and Intelligence Systems. “Our investments in next-generation low Earth orbit SDR provide a decisive leap forward, overcoming the limitations of legacy systems that are rigid and difficult to update once deployed.
Additionally, on December 8, the company entered into a memorandum of intent with Saudi Arabia’s Ministry of Defense to explore collaboration opportunities for ground combat vehicles. The collaboration paves the way for cooperation in areas including battle management systems, C6ISR solutions for brigade-level units, and rugged vehicle computing hardware.
Meanwhile, on December 16, Morgan Stanley analyst Kristine Liwag reiterated a Hold rating on Leonardo DRS and set a $40 price target.
Leonardo DRS Inc. (NASDAQ:DRS) is a U.S. defense technology firm that delivers advanced systems and services to military and intelligence agencies. From components to full integration across land, sea, air, and space platforms, the company has spent over 50 years building a strong reputation with the Department of Defense and allied partners.
4. AeroVironment, Inc. (NASDAQ:AVAV)
Number of Hedge Fund Holders: 37
Analyst Upside Potential: 66.12%
AeroVironment, Inc. (NASDAQ:AVAV) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 11, analysts at Goldman Sachs reiterated a Buy rating on AeroVironment, Inc. (NASDAQ:AVAV) and set a $429 price target. The investment bank remains confident about the company’s outlook following an impressive second quarter of fiscal 2026.
The company delivered a 151% year-over-year increase in revenue to $472.5 million, compared with $188.5 million in the same quarter last year. The increase was driven by higher product sales of $173.8 million and higher service revenue of $110.2 million. Gross margin in the quarter improved to $104.1 million from $73.6 million in the same period last year.
According to Goldman Sachs, AeroVironment is on the cusp of robust long-term opportunities as it continues to meet new government procurement priorities. The investment bank expects the P550, Switchblade, and BADGER programs to drive sustainable revenue growth.
On December 11, Jefferies analyst Greg Konrad shared similar sentiments, reiterating that AeroVironment is a Buy with a $390 price target. The strong Buy is in response to strong revenue growth and substantial bookings, as it has demonstrated a 21% organic revenue increase. Likewise, the company is expected to sustain a 15% compound annual growth rate over the medium term, driven by its extensive pipeline and strong international demand.
AeroVironment, Inc. (NASDAQ:AVAV) is a prominent defense technology company that designs, develops, and manufactures unmanned aerial systems (UAS), unmanned ground vehicles, small missile systems, and, more recently, has expanded into other autonomous systems and counter-UAS systems through the acquisition of BlueHalo. Its primary customers are the U.S. military and other government agencies.
3. Firefly Aerospace Inc. (NASDAQ:FLY)
Number of Hedge Fund Holders: 22
Analyst Upside Potential: 71.75%
Firefly Aerospace Inc. (NASDAQ:FLY) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 10, Firefly Aerospace Inc. (NASDAQ:FLY) inked a commercial payload agreement with Volta Space Technologies. The deal is for the provision of a wireless power receiver in the Blue Ghost Mission 2 lander.
The payload is poised to test the technology for Volta’s planned Lunar power network called LightGrid. The collaboration will allow Volta to prove its LightPort receiver in a real lunar environment and move closer to delivering a fully integrated power grid for the moon.
Using laser transmission from orbiting satellites to surface receivers, Volta’s LightGrid network aims to power lunar surface missions. The U.S. Department of Defense, NASA, ESA, and the Canadian Space Agency have all provided financing to the company.
“Our international mission will enable critical technology demonstrations that lay the groundwork for lasting operations on the Moon. Longer term, our Blue Ghost landers and Elytra orbiters are well equipped to support Volta’s larger vision for a lunar power network, and we look forward to seeing the evolution of our collaboration in the years ahead,” said Jason Kim, CEO of Firefly Aerospace.
On November 25, JPMorgan’s Seth Seifman cut his price target on FireFly Aerospace to $28 from $55 but kept an Overweight rating. He cited slower progress in scaling Alpha launches as the main factor behind the stock’s recent weakness. The firm also trimmed its forecasts to account for a more gradual launch schedule and a shift toward a more “company‑funded” path for the Golden Dome program rather than stronger near‑term support from the Department of Defense.
Firefly Aerospace Inc. (NASDAQ:FLY) is a space & defense tech company providing rapid, reliable, and economical access to space with launch vehicles (like the small-lift Alpha rocket), lunar landers (Blue Ghost), and orbital vehicles for government & commercial clients, enabling missions from rapid satellite deployment to Moon landings and beyond.
2. Redwire Corporation (NYSE:RDW)
Number of Hedge Fund Holders: 15
Analyst Upside Potential: 72.42%
Redwire Corporation (NYSE:RDW) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. On December 9, Canaccord Genuity analyst Austin Moeller reiterated a Buy rating, impressed by Redwire Corporation (NYSE:RDW)’s strategic positioning and growth potential.
According to the analyst, the company is positioned for long-term growth as it transitions from a commercial space company to a defense technology business model. Consequently, the company is positioned to benefit from recurring revenue streams and expanded market presence.
The analyst has also touted the company’s innovative technologies, such as the Stalker UAS and the Roll-Out Solar Array (ROSA), which offer an extended range and a low acoustic profile. The system has already been selected for the Army’s Long Range Reconnaissance program, expected to generate a solid revenue stream. Cantor Fitzgerald analyst Colin Canfield has also touted the company’s long-term prospects. On December 10, the analyst reiterated a Buy rating on the stock and set a $9 price target.
The wave of positive ratings comes on the heels of Redwire Corporation securing a $44 million phase 2 contract from the Defense Advanced Research Projects Agency (DARPA) for its Otter Very Low E Earth Orbit VLEO Mission.
“VLEO represents an exciting new frontier for defense, intelligence, and communications missions,” said Tom Campbell, President of Space Missions at Redwire, in the announcement. “With Otter and our SabreSat platform, we are delivering higher-performance missions at lower altitudes.”
Redwire Corporation (NYSE:RDW) is an aerospace & defense company building space infrastructure, technologies, and solutions for exploration, defense, and commercial use, focusing on digital engineering, AI, microgravity R&D (like in-space manufacturing/biotech), advanced avionics/sensors, and unscrewed systems (drones) for both space and defense applications.
1. AIRO Group Holdings, Inc. (NASDAQ:AIRO)
Number of Hedge Fund Holders: 7
Analyst Upside Potential: 177.45%
AIRO Group Holdings Inc. (NASDAQ:AIRO) is one of the best aerospace and defense stocks to buy according to Wall Street analysts. Colin Canfield of Cantor Fitzgerald reaffirmed his Buy rating on AIRO Group Holdings Inc. (NASDAQ:AIRO) on December 11, keeping his $20 price target unchanged.
On November 24, BTIG analyst Andre Madrid lowered the price target on the stock to $19 from $26 while reiterating a Buy rating. The cut is in response to disappointing third-quarter results, in which sales dropped to $6.3 million from $23.7 million in the same quarter a year ago.
Meanwhile, on November 21, Cantor Fitzgerald reiterated its overweight rating on AIRO Group but cut the price target to $20 from $30. While the research firm cut the price target over concerns that third-quarter results disappointed, it maintains the company represents significant value as a key drone supplier in the US and the European Union.
A point of concern is that the company’s increased focus and concentration on drone revenue, which represents 80% of 2025 sales, creates inherent quarterly volatility. Nevertheless, the research firm has echoed the company’s solid gross profit margins that stand at 63.78%. Cantor Fitzgerald expects the company to address radio-related supply chain challenges by sourcing from multiple suppliers while receiving priority as a national security provider.
AIRO Group Holdings, Inc. (NASDAQ:AIRO) is a next-generation aerospace and advanced air mobility company focused on defense and commercial markets, operating through four segments: Drones (developing and selling unmanned systems), Avionics (creating flight technology for various aircraft), Training (providing military pilot and commercial flight training), and Electric Air Mobility (developing eVTOLs for cargo and passengers).
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