AeroVironment: Brace For An Intense September And Revenue Rise

AeroVironment just won a major $400M+ LOCUST laser contract award. AVAV's robust financials—$632M cash, and $834M debt—position it to capitalize on accelerating defense contract momentum and potential upward guidance revisions.

Winning the LOCUST contract will drive 2027 guidance up. I expect a guidance raise of $200M and support a fair value of $240/share, implying a 60% upside.

Key risks include possible delays in LOCUST or other US military contracts, which could temporarily defer revenue and momentum but not materially impair long-term value.