A $50 Million Reason Why AVAV Stock Is Up Today

A $50 Million Reason Why AVAV Stock Is Up Today

Wajeeh Khan

Thu, September 10, 2026 at 9:08 PM GMT+3 2 min read

• AVAV -0.24%

AeroVironment (AVAV) has secured its first international purchase order for the LOCUST directed energy counter-unmanned aircraft system (c-UAS). Management disclosed the $50 million order alongside robust Q1 earnings, featuring a record $480 million in revenue and a much better-than-expected 59 cents in earnings per share (EPS).

Despite today's gains, AeroVironment stock is down more than 60% versus its year-to-date high.

More News from Barchart

Significance of LOCUST order for AVAV Shares

The LOCUST order underscores growing global demand for scaled high-energy laser weapons as militaries seek defense against modern drone threats.

Announced just days after a separate $500 million U.S. Army Enduring-High Energy Laser (E-HEL) contract, the deal validates AVAV's expansion beyond traditional loitering munitions into next-gen directed energy warfare.

Investors are treating it as a major commercial breakthrough that notably expands AeroVironment's total addressable market.

Note that AVAV shares were briefly seen trading above their 20-day moving average (MA) today, a technical setup that indicates bulls are attempting to regain control for the near term.

Q1 Earnings Warrant Buying AeroVironment Stock

AeroVironment shares are worth buying also because the company's funded backlog surged 37% in the second quarter to a record $1.5 billion, providing multi-year revenue visibility.

Following the earnings release, JPMorgan analysts reiterated their Overweight rating on the drone specialist and raised their price target to $210, indicating potential upside of more than 35% from here.

Note that AVAV currently trades at a rather stretched forward price-to-earnings (P/E) ratio of about 46x.

But the aforementioned contract wins partnership expansion with NASA positions it uniquely at the intersection of autonomous systems, loitering precision munitions, and high-energy defense technology that could help drive the share price up further through the remainder of 2026.

Wall Street's View on AeroVironment

It's also worth mentioning that JPMorgan, despite the bullish post-earnings research note, is still one of the more conservative Wall Street firms on AeroVironment.

According to Barchart, the consensus rating on AVAV stock sits at "Strong Buy," with the mean price target of about $238 indicating potential for a 55% rally over the next 12 months.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com