AeroVironment, Inc. (AVAV) a Strong Buy, Wall Street Projects 65% Upside

AeroVironment, Inc. (NASDAQ:AVAV) is among the 10 best American defense stocks to buy according to Wall Street analysts.

Based on the recommendation from 13 analysts, the stock is a Strong Buy with a one-year average share price target of $390.75, representing an upside of nearly 65% as of February 5.

AeroVironment, Inc. (AVAV) a Strong Buy, Wall Street Projects 65% Upside

On January 30, Needham analyst Austin Bohlig maintained a Buy rating on the stock with a price target of $450. This is a reaffirmation of the firm’s earlier update in December.

This follows KeyBanc’s adjustment on AeroVironment, Inc. (NASDAQ:AVAV) earlier in the week on January 28, when the firm lifted its price target on the stock to $330 from $285, while keeping an Overweight rating.

KeyBanc anticipates a promising macro environment for space and defense stocks with potential for substantial growth in 2026. According to TipRanks, the firm also hinted at the possibility of re-rating several stocks in the sector ahead.

In other news, on January 28, the company announced it had secured a $75 million task order from the U.S. Air Force to develop next-generation biotechnology and materials science. The award highlights AVAV’s growing role in defense modernization.

AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robot systems, and loitering munition systems.

While we acknowledge the risk and potential of AVAV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVAV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.