AeroVironment Shares Slide 17% on $1.4B Space Force Rebid
AeroVironment shares dropped 17.4% to close at $208.26 after the Space Force opened a $1.4 billion rebidding for mobile ground station supplies originally awarded to its BlueHalo subsidiary. Raymond James cut its rating to underperform while BTIG maintained a buy rating with a $415 price target.
1. Share Price Decline
AeroVironment shares plunged 17.42% to close at $208.26 after news broke that the U.S. Space Force will re‐open bidding on a $1.4 billion contract for mobile ground station supplies originally awarded to BlueHalo, an AeroVironment subsidiary.
2. Analyst Downgrade and Reaffirmation
Raymond James downgraded AeroVironment to underperform, citing potential revenue headwinds from the rebid, while BTIG reaffirmed its buy rating and $415 price target, noting the contract accounts for roughly 6% of annual sales and that the share decline appears excessive.
3. Upcoming Earnings Call
Investors will monitor AeroVironment’s March 10 earnings call for third‐quarter fiscal 2026 results, seeking updates on the rebidding process and its implications for near‐term revenue and backlog.