Goldman Sachs
is maintaining its Buy and $38 price target on AeroVironment (NASDAQ: AVAV) despite a big Q3 "miss" after the close.
The firm notes timing matters a lot to the company and it clearly stated that $20 million of Raven and Puma revenue slipped to be booked on January 31, versus the quarter end of January 28 due to an administrative delay. Goldman said had this revenue been booked in the quarter, AVAV would have posted EPS of $0.50, or 20% above the consensus. This is reflected in the fact that the company did not change its full-year FY2012 revenue or EPS guidance.
Goldman is maintaining its Buy rating as it views AVAV as the only defense company they cover with significant growth potential. It has above-average ROIC and net cash on the balance sheet and they view it as a high potential M&A candidate.
The firm notes timing matters a lot to the company and it clearly stated that $20 million of Raven and Puma revenue slipped to be booked on January 31, versus the quarter end of January 28 due to an administrative delay. Goldman said had this revenue been booked in the quarter, AVAV would have posted EPS of $0.50, or 20% above the consensus. This is reflected in the fact that the company did not change its full-year FY2012 revenue or EPS guidance.
Goldman is maintaining its Buy rating as it views AVAV as the only defense company they cover with significant growth potential. It has above-average ROIC and net cash on the balance sheet and they view it as a high potential M&A candidate.
No comments:
Post a Comment
Please leave me any comments. I look forward to replying.