Aerovironment Surges on Buy Rating and $4.1B BlueHalo Acquisition as Stock Ranks 417th in Market Activity

Aerovironment (NASDAQ:AVAV) rose 2.48% on August 12, 2025, with a trading volume of $250 million, ranking 417th in market activity. The stock’s performance aligns with a positive analyst report from Canaccord Genuity, which initiated a "Buy" rating and set a $305 price target. The firm highlighted robust U.S. defense spending on unmanned systems, counter-drone technology, and space-based missile defense as key drivers for the stock. Analyst Austin Moeller noted that the Pentagon’s fiscal 2026 budget includes $9.4 billion for unmanned systems and $3.1 billion for counter-drone programs, driven by lessons from conflicts in Ukraine and the Middle East. The report also emphasized a 30% year-over-year increase in the Space Force budget to $39.9 billion, tied to the Golden Dome program for missile defense.

Moeller cited Aerovironment’s recent $4.1 billion acquisition of BlueHalo as a strategic move to strengthen its position in military space and directed energy markets. The acquisition is expected to boost revenue from counter-drone electronic warfare, laser systems, and SATCOM antennas. The Space, Cyber & Directed Energy segment is projected to account for 38% of full-year 2025 pro forma revenue. The price target of $305 is based on a 45.9x EV/EBITDA multiple applied to 2026 adjusted EBITDA estimates of $303 million.

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