AeroVironment: Drones and Dollars

AeroVironment (AVAV +7.83%) shares went up today. It happens. People buy things. So it goes.

By the end of the trading day, the price had increased by more than 7%. A perfectly respectable number, if you’re keeping score. Which, of course, somebody is.

Someone Predicts Gains

JPMorgan Chase analyst Seth Seifman decided AeroVironment might be worth $320 a share. That’s what they call a “price target.” It implies a potential gain of 20% for investors. A temporary illusion of wealth, mostly.

Seifman sees growth in military drones, things that stop drones, and space technology. The Department of Defense wants to make more things here, at home, instead of… elsewhere. It’s a comforting thought, I suppose. Seifman expects the autonomous systems division to grow 14% a year until 2030. A prediction. They’re always predicting things.

The Business of Conflict

AeroVironment’s drones are currently involved in various conflicts, including Ukraine. Demand is high, naturally. When people are trying to kill each other, they need tools. It’s a reliable market, really. The U.S. military and its allies are apparently quite pleased.

In December, the Army awarded AeroVironment an $874 million contract. That’s a lot of money. Enough to build a small city, or a lot of drones. They’ll deliver unmanned aerial systems and counter-systems to allied and partner forces. More tools for more conflicts. So it goes.

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2026-02-18 01:02