Aerovironment sharers rise on possible contract

HARTFORD, Conn. (AP) — Shares of Aerovironment Inc. rose Monday after an analyst upgraded the unmanned aircraft manufacturer on the possibility it can win a long-term, lucrative military contract.

Analyst Michael F. Ciarmoli of Boenning&Scattergood upgraded the Monrovia, Calif., company to "outperform" from "neutral." He initiated a $33 price target.

In a note to clients, he said he believes Aerovironment's Switchblade flyer will become a Department of Defense program as early as Thursday.

The Switchblade is a miniature, remotely piloted flyer that can glide or propel itself and provide real-time global positioning satellite coordinates and video for information gathering, targeting, or recognition of features and objects.

Aerovironment says the Switchblade's small size and quiet motor make it difficult to detect, recognize or track, even at very close range.

Ciarmoli said the Pentagon's selection of the Switchblade would make consistent "out-year funding and order flow more of a reality."

He said he upgraded Aerovironment's shares because he believes the company's "numerous compelling upside catalysts" and its exposure to fast-growing markets establishes a "compelling investment case."

Shares rose 60 cents, or 2 percent, to $29.12 in afternoon trading.