Why AeroVironment Stock Lost 6% of Its Value on Friday
No stock, no matter how well its underlying company might be doing, can soar high forever. So it was with soaring drone stock (NASDAQ: AVAV), whose price lost altitude at a more than 6% rate on Friday. A new analyst note was the main catalyst behind the drop, which was notably steeper than the 0.7% slip of the benchmark S 500 index.
Well before market open that day, Baird's Peter Arment downgraded his AeroVironment recommendation to neutral from his previous outperform (i.e., buy), at a price target of $161 per share.
While Arment likes the drone company's fundamentals, he's concerned about that share price surge. This, he pointed out in his note, was sparked by its fiscal third-quarter results released earlier this week. These trounced analyst expectations and showed hot growth over the year-ago period -- which shouldn't have come as that much of a surprise, given the surging demand for its combat drones.
Source Fool.com
Aerovironment Stock
Aerovironment is currently one of the favorites of our community with 12 Buy predictions and no Sell predictions.
With a target price of 170 € there is a slightly positive potential of 2.47% for Aerovironment compared to the current price of 165.9 €.
