AeroVironment shares rise after analyst upgrade

posted: 85 DAYS 15 HOURS AGO

Text SizeAAA

NEW YORK -AeroVironment Inc. rose Monday after an analyst upgraded the stock of the unmanned aircraft manufacturer on prospects that the war in Afghanistan will boost Pentagon orders and company production.

The U.S. Army is increasing the number of personnel who can operate the Monrovia, Calif., company's Raven unmanned aerial vehicle, said Broadpoint AmTech analyst Peter Arment, who upgraded the shares to "Buy" from "Neutral."

He also increased his price target to $36 from $32 based on his expectation of earnings per share in fiscal 2011 of $1.50. Analysts polled by Thomson Reuters expect, on average, 1.41.

In afternoon trading, the stock rose $2.25, or 8 percent, to $30.41. In the past 12 months the shares have ranged from $18.50 to $41.22.

"Stable production contracts, potential upside from development programs and longer-term gains in electric vehicle charging leave the company very well-positioned for the long-term," Arment wrote in a client note.

"We believe investors should establish or look to add to a position."

2009-11-16 16:19:05