AeroVironment, Inc. (AVAV) Gains Tailwinds as Geopolitical Tensions Drive Defense Investment

AeroVironment, Inc. (NASDAQ:AVAV) is one of the defense & aerospace stocks gaining from rising geopolitical spending. On January 21, analysts at Citizens reiterated a Market Outperform Rating on AeroVironment, Inc. (NASDAQ:AVAV) and set a $400 price target.

Citizens Asserts Market Perform Rating on AeroVironment, Inc. (AVAV) on US Defense Tailwinds

According to Citizens, the company is well-positioned to benefit from tailwinds in the US and from global defense priorities driving rapid funding and procurement in key aerospace domains. A merger with BlueHalo is also expected to create a scaled design-to-production engine across the drone and cyber spaces. In addition, the company can capitalize on its strong international base as a second growth engine.

RBC Capital has also reiterated an Outperform rating and a $375 price target on the stock, despite the company receiving a stop-work order from the US Department of Defense regarding the BADGER phased-array antenna system. The program was expected to generate about $175 million in revenue in fiscal 2026, with a larger share in the second half of the year.

AeroVironment, Inc. (NASDAQ:AVAV) is a defense technology leader that creates intelligent, multi-domain robotic systems, including drones (UAS), loitering munitions (e.g., Switchblade), and counter-UAS (C-UAS) solutions for defense, government, and commercial clients.

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Disclosure: None. This article is originally published at Insider Monkey.