Stifel Maintains Buy Rating on AeroVironment (AVAV) Following Strong Q1 Sales Growth

AeroVironment, Inc. (NASDAQ:AVAV) ranks among the best fast growth stocks to buy now. Following the company’s first-quarter results, which revealed better-than-expected sales growth, Stifel maintained its Buy rating and $295 price target on AeroVironment, Inc. (NASDAQ:AVAV) on September 10.

The drone manufacturer reiterated its fiscal year projection for both sales and EBITDA and recorded a 16% organic sales growth in the quarter, exceeding the expectations of the market. Moreover, Stifel does not consider AeroVironment’s continued delay in turning its $3.1 billion unpaid backlog into funded contracts to be a serious concern.

Considering that AeroVironment, Inc. (NASDAQ:AVAV) is now pursuing more than 20 separate programs with potential worth surpassing $20 billion over the next five years, Stifel expects funding will eventually follow government priorities and the spike in backlog.

AeroVironment, Inc. (NASDAQ:AVAV) is a company that designs, develops, manufactures, delivers, and supports a range of robotic systems and associated services for businesses and government organizations both domestically and abroad.

While we acknowledge the potential of AVAV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVAV and that has 100x upside potential, check out our report about this cheapest AI stock.

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