AVAV Stock On Track For A Five-Day Green Spell – Analysts Cheer AeroVironment’s Recent Government Award For Counterattacking Drones

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The company’s $500 million contract came days after its reported strong fourth-quarter results.

  • Jefferies said the award strengthens revenue visibility for fiscal year 2027.
  • BTIG believes the award could offer upside to the company’s FY27 outlook as task orders may follow soon.
  • In its latest quarterly report, AeroVironment’s revenue more than doubled to $641.6 million.

Shares of drone maker AeroVironment (AVAV) surged on Thursday after the company secured a $500 million U.S. Army contract, drawing praise from Wall Street.

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At the time of writing, AVAV stock was up more than 12% and on track to close in the green for a fifth consecutive session if gains hold.

Wall Street Cheers AVAV’s Win

Jefferies said the award strengthens fiscal year 2027 revenue visibility and reaffirms the view expressed by AeroVironment’s management that counter-unmanned aerial systems are “becoming a major growth vector,” TheFly reported. The firm expects up to $200 million in peak annual revenue from the contract.

BTIG said the award is a positive catalyst as the company has been awaiting a marquee award to help reignite investor enthusiasm. The firm said the award could also offer upside to its FY27 outlook as task orders may follow soon. Both firms maintain their ‘Buy’ rating on the stock.

Wall Street sentiment is largely bullish, with 17 out of 20 analysts covering the stock rating it a ‘Buy’ or higher, with the remaining rating it a ‘Hold.’

What Is The Army Award About?

The U.S. Department of War awarded the company a contract to supply the Titan RF detect-and-defeat system, which can stave off attacks from an enemy’s drones. The contract is expected to run through June 2029.

The contract also notably came days after the company reported strong fourth-quarter results, with revenue more than doubling to $641.6 million and funded backlog growing to $1.2 billion for the quarter, from $726.6 million in the year-ago period.

What Retail Traders Think About AVAV

On Stocktwits, retail sentiment toward the stock remained in ‘extremely bullish’ territory over the last 24 hours.

One user on the platform said AVAV’s award adds further visibility to an already improving demand cycle in the defense tech sector.

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Another user highlighted the broader rally in drone stocks.

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AVAV shares have fallen roughly 20% so far this year and over the past 12 months, underperforming the benchmark S&P index.

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