AeroVironment Secures $499M AFRL Contract for Electromagnetic Spectrum Survivable Materials
AeroVironment Inc. has secured a significant ten-year, $499 million contract from the U.S. Air Force Research Laboratory (AFRL) to research and develop high-performance electromagnetic spectrum survivable materials. This contract, awarded under the HELMSSMAN program, is set to bolster the company's portfolio and potentially impact its stock performance on the stock market.
The HELMSSMAN project, aiming to safeguard warfighters from harmful electromagnetic radiation, involves two initial task orders: one focused on vision protection materials and the other on materials for electromagnetic spectrum resilience. Despite this substantial contract, The Motley Fool's Stock Advisor service has not included AeroVironment in its current top 10 stocks to buy now.
AeroVironment's stock price has been on the rise, reaching $345.45 with a market cap of $17 billion. This week, three Wall Street analysts have raised their price targets for the stock, with the highest target at $365, suggesting a potential 7% gain. Jefferies has recognized AeroVironment as 'one of the winners' in the rush to invest in drone technology.
AeroVironment's recent stock performance has been robust, with a 7.9% increase on Wednesday and a weekly gain of over 12%. The company's new contract with the AFRL, valued at $499 million over ten years, is expected to drive further growth and innovation in electromagnetic spectrum survivable materials. Despite the positive outlook, Stock Advisor's exclusion from its top 10 stocks list may indicate potential areas for improvement.
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