AeroVironment (AVAV) shares gained Thursday after Raymond James upgraded the stock to Outperform from Market Perform. The firm set a $210 price target.
This upgrade follows a 55% decline in the company's stock price since March. The analyst believes this decline created a positive risk/reward scenario for investors.
Raymond James states that prior concerns, including SCAR program issues and delayed government orders, are now largely reflected in the valuation.
The firm forecasts a constructive outlook. It notes that company bookings are starting to improve. Its backlog is positioned to grow again. Raymond James suggests consensus expectations are now "significantly de-risked."