Why AeroVironment Stock Took Flight and Climbed 15% This Week

MrDecoder · 2026-02-20T11:10:39+00:00

AeroVironment shares rose significantly following the deployment of its counter-drone technology at El Paso International Airport due to a drone incursion. JPMorgan Chase initiated coverage with an overweight rating and a price target of $320, highlighting the company's growth potential in defense and the importance of rising budgets.

MrDecoder

2026-02-20 11:10:39

Abstract generation in progress

Shares of** AeroVironment **(AVAV +5.95%) were trading sharply higher this week, jumping as much as 17.2%, according to data supplied by S&P Global Market Intelligence. After the market close on Thursday, the stock was still up 15.5%.

The catalysts that sent the drone maker higher were reports that the company’s cutting-edge counter-drone technology was deployed at a U.S. airport earlier this week, sparking some attention from Wall Street.

Image source: Getty Images.

High-profile deployment

El Paso International Airport made headlines last week when the Federal Aviation Administration (FAA) abruptly closed the airspace around the highly traveled airport. Officials cited a drone incursion from neighboring Mexico.

Later, conflicting reports surfaced suggesting that the U.S. military or U.S. Customs and Border Protection had deployed counter-drone lasers, prompting the shutdown. The technology in question was AeroVironment’s LOCUST counter-drone direct-energy laser weapons system.

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NASDAQ: AVAV

AeroVironment

Today’s Change

(5.95%) $15.79

Current Price

$281.25

Key Data Points

Market Cap

$14B

Day’s Range

$265.00 - $285.05

52wk Range

$102.25 - $417.86

Volume

151

Avg Vol

1.4M

Gross Margin

21.66%

In the wake of this development, **JPMorgan Chase **analyst Seth Seifman initiated coverage of AeroVironment stock with an overweight (buy) rating and a $320 price target. At the time of the analyst’s call on Tuesday, that represented 31% upside potential, but the stock has since closed the gap.

Seifman noted that AeroVironment operates in high-growth areas of defense, including drones, counter-drone systems, and space. He went on to cite rising defense budgets and geopolitical risks to justify the company’s premium valuation.

The analyst has a point. At 173 times earnings and 82 times forward earnings, AeroVironment stock certainly fetches a lofty valuation. As a leader in next-generation warfighting technology, the company is well-positioned to prosper, but investors should exercise caution with this highflier.

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