12:01 PM EDT, 09/05/2024 (MT Newswires) -- AeroVironment's ( AVAV ) strong fiscal Q1 results were overshadowed by the company's unaltered fiscal 2025 guidance, RBC Capital Markets said in a note.

"Management called out uncertainty around contract timing, risks associated with a CR for FY25, US election risk, and the fact that it has completed just one quarter, as reasons for not raising its FY25 guidance," RBC said.

RBC lowered its fiscal 2025 revenue estimate for the company to $835 million from $887.2 million and the fiscal 2026 revenue forecast to $935.3 million from $1 billion.

The report also said the firm provided incremental details on the recently awarded $990 million US Army contract.

"The company has received an initial $128m task order under this contract, which is reflected in the company's revenue visibility," the note said. "However, the company was not explicit on what the initial FY25 guidance included from this contract, and what could represent potential upside."

RBC kept its outperform rating on the stock, while cutting its price target to $215 from $230.

Price: 188.22, Change: -5.82, Percent Change: -3.00