04:12 PM EDT, 04/05/2024 (MT Newswires) -- AeroVironment ( AVAV ) is in a position to boost output with minimal capital investment, with competitive advantage supporting its outlook amid robust demand, RBC Capital Markets said in a note.
"We share AVAV's optimism on the growth outlook," RBC analysts Ken Herbert and Stephen Strackhouse said after hosting two days of meetings with the management, including CEO Wahid Nawabi.
They said the management remained very confident in the top-line outlook, with several structural shifts in demand.
"While the stock has given up much of its post 3Q24 gains...we believe strong FY25 top-line expectations, with continued growth in adj. EBITDA margins, will remain key catalysts," the analysts said.
RBC kept its outperform rating on the stock while raising its price target to $165 from $160.
Price: 148.68, Change: +2.26, Percent Change: +1.54