RBC Capital analyst Ken Herbert downgraded AeroVironment Inc. from Outperform to Sector Perform on July 9, 2026. The firm reduced its price target for the stock to $180 from $210.
The downgrade reflects a cautious outlook on revenue acceleration and margin improvements between 2028 and 2030. RBC Capital identified rising competitive pressures and stagnant defense spending as primary headwinds. Analysts also noted potential risks involving the company's capital investments and capacity expansion plans.
This move suggests a watchful stance until financial visibility improves. The rating change contrasts with other analysts who reiterated Buy ratings on the same day.