AeroVironment Stock Forecast: Could Reach $301 by 2025?
AeroVironment (AVAV), a leading defence technology company known for its battlefield-ready drones like the Switchblade and Puma systems, is experiencing a surge in its stock price, up 60% year-to-date (YTD). This upward trend has been fueled by a combination of strong earnings growth forecasts, a bullish analyst consensus, and favourable market conditions.
The current outlook for AeroVironment's stock is broadly positive, with a strong buy consensus among analysts. On average, eight analysts give a "Strong Buy" rating, and the average price target is around $256.5, implying a modest upside of about 4.17% from recent prices near $246-$250. Analysts' price targets range from a low of $210 to a high of $301, indicating some variation in expectations but a generally optimistic view overall.
The company's upcoming earnings per share (EPS) estimate is $1.44, which represents a significant increase (234.88% year-over-year in one report). Earnings growth for the coming year is expected to be strong, with forecasts indicating growth from $3.38 to $4.45 per share (around 31.66% growth).
Recent trading and volatility have shown some variation, with a 14-day RSI around 61.5 and an implied volatility of about 16.56%. However, the stock maintains technical support above 50-day and 200-day simple moving averages.
Brokerage firms maintain a buy status, reaffirming overall positive expectations. William Blair, Raymond James, Stifel, and Goldman Sachs have all reiterated their "Outperform", "Buy", and "Strong Buy" ratings on AVAV stock.
The commercial drone market is also expected to reach a value of $355.55 billion by 2032, providing a promising long-term growth opportunity for AeroVironment.
President Donald Trump's executive orders to boost U.S. drone production and airspace security have further bolstered the company's prospects. The war in Ukraine has also been a turning point for AeroVironment, with its Switchblade and Puma systems becoming real-world proof that low-cost, high-impact tech can shift military doctrine.
In the past three months, AVAV stock has increased more than 128%, and in the past month, it has increased by 32%. This growth has already surpassed the mean target price, suggesting that AVAV stock's recent rally may continue.
Seven out of eight analysts covering AVAV stock recommend a "Strong Buy", while one offers a "Moderate Buy" rating. Goldman Sachs analyst Anthony Valentini initiated coverage on AVAV stock with a Street-high $301 price target, betting on drone warfare's rising relevance.
Goldman Sachs expects AeroVironment to ride operating leverage into "higher profitability and cash generation" due to the U.S. Department of Defense ramping up contracts and allies boosting their budgets. Analysts anticipate fiscal 2026 EPS to dip 10.7% YOY to $2.93, before surging 44% to $4.23 in fiscal 2027.
AeroVironment's fiscal 2025 closed with record bookings of $1.2 billion and an order backlog of $726.6 million, positioning the company well for future growth. The robust fiscal 2025 finish, coupled with the BlueHalo acquisition's strategic edge, has led Raymond James to bump its price target to $225. BTIG has also raised its target to $300, citing drone warfare's rising relevance.
In conclusion, AeroVironment's stock price is generally expected to rise moderately over the next year, supported by strong earnings growth forecasts and a bullish analyst consensus. While there is some short-term caution reflected in sentiment indicators, the overall recommendation trend strongly favours buying the stock with an average price target near $256-$257, representing a 4-5% upside from current levels around $246-$250.
- The positive outlook for AeroVironment's stock is reflected in the strong buy consensus among analysts, with eight of them giving a "Strong Buy" rating and an average price target of around $256.5, indicating a modest upside of about 4.17%.
- AeroVironment's stock price is expected to rise moderately over the next year, with earnings growth forecasts and a bullish analyst consensus supporting this trend. The average price target is near $256-$257, representing a 4-5% upside from current levels around $246-$250.
