AeroVironment's Space Unit Wins $99.8M Pentagon Contract Amid Recovery Efforts
AeroVironment (AVAV) saw its BlueHalo unit secure a new $99.8 million contract from the Pentagon for space systems research, contributing to a nearly 4.6% stock rally on September 14. This follows a major setback in early 2026 when AeroVironment's previous large-scale SCAR program was terminated, leading to significant losses and eroding investor confidence. Despite this recent positive development, AVAV shares remain about 63% below their October 2025 all-time high. The company reported a record fiscal first-quarter revenue of $480.5 million with strong earnings that exceeded expectations, which analysts suggest may have driven the stock's performance more than just the new contract. Wall Street remains optimistic, with an average price target of $222.82 and 20 analysts maintaining a 'Buy' rating.
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