Raymond James downgraded AeroVironment from Strong Buy to Underperform after the U.S. Space Force announced it will recompete the SCAR program - AeroVironment’s largest contract (~$1.4B). Originally awarded to Blue Halo, the program faces potential share loss or exclusion as the government may restructure the acquisition strategy.
AeroVironment’s $2.8B backlog could shrink by $1–1.4B, creating uncertainty for future revenue. Raymond James also highlighted stagnating or contracting core backlog due to rising competition, moderating orders, and faster revenue recognition. Analyst price targets remain wide, ranging from $259 to $450.
—
Based on reporting by Investing.com (Mar 2, 2026).
