AeroVironment, Inc. (NASDAQ:AVAV) is one of the stocks in focus in Jim Cramer’s game plan for this week. Cramer said that the company is “worth watching,” and stated: “Here’s one worth watching, drone maker AeoVironment, which reports Tuesday after the close. We had them on when they reported last, okay, and I loved what I heard, but I felt like I was alone. Stock was doing nothing, even when it dipped. Then AVAV, when I talked it up on Squawk on the Street, the darn thing levitated, and it never came bac ...

Core Viewpoint - Needham analyst Austin Bohlig initiated coverage on AeroVironment, Inc (AVAV) with a Buy rating and a price target of $300, highlighting the growth potential in the U.S. unmanned aerial systems market as defense priorities shift towards autonomous platforms [1] Group 1: Market Dynamics - The U.S. unmanned aerial systems market is entering a long growth cycle, driven by increased defense spending and a focus on unmanned systems, including over $15 billion from the Trump administration [2] - AeroVironment's market opportunity is projected to expand nearly fivefold to $50 billion, indicating significant growth potential [3] Group 2: Company Positioning - AeroVironment has strengthened its portfolio through the BlueHalo acquisition, positioning itself as a next-gen defense prime in fast-growing warfare technologies [1][2] - The company's share of U.S. Department of Defense UAS contracts increased from approximately 2% ($198 million) in 2015-2019 to nearly 7% ($593 million) in 2020-2025, reflecting its expanding role in defense procurement [3] Group 3: Financial Strategy - AeroVironment's recent $1.7 billion capital raise is aimed at funding capacity expansion and potentially supporting strategic acquisitions in emerging defense technology [4] - The combination of a larger addressable market, share gains, and a differentiated next-gen portfolio is expected to provide room for further multiple expansion, alongside stronger margins and cash flow [4]