Shackley Brian Charles sold $41K of AVAV

Leonardo DRS (DRS) will provide power and cooling systems for AeroVironment's (AVAV) 30-kilowatt LOCUST X3 laser weapon, part of the U.S. Army's Enduring-High Energy Laser (E-HEL) program. The E-HEL is the Army's first production contract for a high-energy laser weapon system, aimed at countering unmanned aircraft threats. DRS's role supports AV's production of the LOCUST X3 for the Army's counter-UAS operations.

AeroVironment (AVAV) stock fell 70% after losing a $1.7B U.S. Space Force contract, leading to $240M in write-downs. The company acquired BlueHalo for $4.1B in 2025, but the Space Force reopened the program to other suppliers. Despite this, AeroVironment reaffirmed its $3.5B-$4B revenue target by 2030. The stock trades at 38x forward earnings, above the defense sector median.

Oppenheimer initiated coverage of AeroVironment with an Outperform rating and a $205 price target, implying 74.5% upside. The company is projected to achieve $2.20B in FY27 and $2.58B in FY28 revenue, driven by demand for its counter-UAS solutions and UAS franchises. The acquisition of BlueHalo is expected to enhance its capabilities in counter-UAS, directed energy, and cyber solutions.

Oppenheimer initiated coverage of AeroVironment (AVAV) with an Outperform rating and $205 price target, citing growth in counter-drone systems. Shares briefly rose to $122.19 before settling at $118.58. Oppenheimer forecasts counter-UAS revenue to reach $950M by fiscal 2030, with funded backlog at $1.46B. Revenue estimates for fiscal 2027 and 2028 are $2.20B and $2.58B, respectively, with EPS of $3.30 and $4.25.

The US Army awarded AeroVironment a $464.8M contract for its 30-kilowatt LOCUST X3 laser weapon, designed to destroy small drones. The modular system, expected by 2028, can be transferred between vehicles. AeroVironment also reported a $50M international order and plans to expand its campus, creating 450 jobs. The Army claims successful drone interceptions, but independent verification is lacking.

The U.S. Army and Air Force are investing in new drone defense systems. The Army awarded a $464.8M contract to AeroVironment for 26 Locust-X3 laser systems. The Air Force seeks medium-caliber anti-aircraft cannons. Both aim to reduce costs per shot against drone threats, with lasers offering low per-shot costs but high procurement expenses, while guns provide immediate solutions. AeroVironment's Locust-X3 is operational and has seen international sales.