Opinions
Kim Bolton
AeroVironment
AVAV-Q
TOP PICK
Aug 13, 2025
Stock price when the opinion was issued
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We are fairly surprised AVAV has not done better, considering the ongoing wars and the increased defense spending movement. It remains net debt free and good earnings growth is expected, just not as much as previously. At 40X earnings, investors are questioning its premium valuation in light of slowing growth. It is also in the cross hairs of the new US government, which recently issued 'stop work' orders on some contracts to foreign entities'. We would like to see it as a HOLD, but the political risk is hard to quantify. If the Ukraine War ends there will also likely be a sentiment shift (negative) towards its growth prospects. We would thus be OK letting this go.
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Has also been around a long time; a lot of military companies have pivoted and taken off since the Ukraine war. In the language of the military, they have drones called "loitering munitions" (kamikaze drones). Nice 12-month price target of $290. No dividend.
(Analysts’ price target is $298.27)Note that all his Top Picks today aren't in nosebleed territory, but they're very popular. So you really need to go in by thirds. You can buy some today, but save 2/3 to make purchases later. For this name, buy 1/3 here at $245-250, at $235, and again at $225.