All research in Defense Technology — 1 reports.
AeroVironment is a core U.S. supplier of loitering munitions (Switchblade) and small drones (Puma/Raven), positioned directly in the strongest defense tailwind of this cycle: drone dominance. The central thesis is that a first-rate franchise is meeting a costly integration stumble after the $4.1 billion all-stock BlueHalo acquisition, with the Q3 revenue miss, gross margin compression from 38% to 24%, a $151 million space goodwill impairment, lowered full-year guidance, a GAAP loss, and securities class-action litigation all surfacing at once. Rating Watch: a durable compounder in a powerful market, but the better entry point is after integration stabilizes or below $175.
