Al Root

Shares of drone and autonomous systems maker AeroVironment have been strangely weak, down by double digits over the past month. That spells an opportunity for one analyst who is new to covering the stock.

Piper Sandler analyst Clarke Jefferies on Thursday launched coverage of AeroVironment with a Buy rating and a $391 price target. His call helped to send shares of AeroVironment up 4.3% to $292.38.

The stock move came alongside a broader rally fueled by Nvidia's earnings report. The S&P 500 and Dow Jones Industrial Average were up 1.9% and 1.5%, respectively.

Piper Sandler's Jefferies wrote in his note that he sees more growth for the company and a "proven agility to develop some of the market's most innovative products in rapidly growing segments."

AeroVironment makes autonomous systems for the military, including the Switchblade guided munition that can loiter in the air, waiting for a target, and the Puma drone for situational awareness. It has counter-drone technologies, too.

Drones are a focus for militaries around the globe, and this increased spending shows up in the company's results. AeroVironment is expected to generate sales of $2.3 billion in fiscal 2027, up from $2 billion in fiscal year 2026. (AeroVironment's year ends in April.)

All 16 analysts covering AeroVironment stock rate shares Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for AeroVironment is about $400, up more than 40% from recent levels. That's a huge gap.

AeroVironment shares are down 23% over the past month. Despite that decline, the stock is up more than 80% this year.

Earnings aren't to blame for the recent stock drop. Shares jumped 7% after the company reported better-than-expected fiscal first-quarter sales. The company's second-quarter report is expected to come in early December.

Barron's wrote positively about AeroVironment stock in early May, when shares were at about $165, saying the drive for more drones would lead to more growth.

It appears Wall Street sees no reason to change that opinion.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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November 20, 2025 10:34 ET (15:34 GMT)

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