AeroVironment, Inc. (NASDAQ:AVAV) is among the 8 Best Drone Stocks to Buy for the Next 3 Years. On March 12, BTIG analyst Andre Madrid slashed the firm’s price target on the stock to $330 from $415, while maintaining a Buy rating.

The adjustment followed the company’s Q3 2026 financial results earlier in the week, which missed Wall Street’s expectations for both revenue and profit. The drone maker announced diluted earnings per share of $0.64 from a quarterly revenue of $408 million, against forecasts of $0.68 cents over $476 million.

AeroVironment, Inc. (NASDAQ:AVAV)’s unfunded backlog at the end of the quarter totalled $3 billion, which included $1.4 billion tied to the U.S. Space Force’s Satellite Communications Augmentation Resource (SCAR) program, which is ‘no longer expected to be awarded,’ said the company.

While the development has left investors concerned, BTIG believes the share price slump following the quarterly results stemmed more from the company’s weak performance in the Cyber & Mission Systems segment than from the SCAR termination. The firm also believes BlueHalo’s assets are taking a toll on AeroVironment, Inc.’s (NASDAQ:AVAV) margins.

In other news, on the same day, Canaccord Genuity also lowered its price target to $300 from $330, citing the Space Force’s SCAR contract termination. The firm kept its Buy rating. As of the close on March 13, the drone maker is a Strong Buy with an average upside of 49%.

AeroVironment, Inc. (NASDAQ:AVAV) designs and manufactures unmanned aerial vehicles, ground robot systems, and loitering munition systems.

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