** Jefferies lifts AeroVironment AVAV.O PT to Street-high $365 from $320; its second raise on the co in 3 months

** New PT shows an upside of 15.9% from the stock's last close

** Maintains rating at "buy"

** In July, Jefferies lifted co's PT to $320 from $285

** Brokerage says U.S and its allies are increasing defense spending after years of limited investment, and with fewer big defense companies, the government is encouraging more competition by adding new players like AVAV

** Notes co's defense systems are proven in combat, built with customers, and ready to scale - like BADGER system, which boosts satellite links and can be upgraded easily

** 13 of 14 brokerages rate the stock "buy" or higher, one "hold" ; their median PT is $305 - data compiled by LSEG

** As of last close, stock had risen 104.6% YTD

(Reporting by Apratim Sarkar in Bengaluru)

((Apratim.Sarkar@thomsonreuters.com))