Why AeroVironment Stock Just Jumped 16.5%
AeroVironment (NASDAQ: AVAV) stock took off like a rocket Wednesday morning, rising by 16.5% through 10:15 a.m. ET, after the Pentagon announced the company's single biggest contract win ever.
The news led Tuesday night's press release listing the biggest Defense Department contracts awarded that day: $990 million awarded to AeroVironment "to provide an organic, stand-off capability to dismounted infantry formations capable of destroying tanks, light armored vehicles, hardened targets, defilade and personnel targets."
Admittedly, that language is a bit vague. What it probably refers to, though, are Pentagon purchases of Switchblade 600 "loitering munition systems" (aka, kamikaze drones). Featuring "high-precision optics, over 40 minutes of loitering endurance, and an anti-armor warhead for engaging larger, hardened targets at greater distances," this drone seems tailor-made for the mission described in the Pentagon's press release.
Source Fool.com
Aerovironment Stock
Aerovironment is currently one of the favorites of our community with 13 Buy predictions and no Sell predictions.
With a target price of 197 € there is a slightly positive potential of 4.04% for Aerovironment compared to the current price of 189.35 €.
