Aevex Investors Focus on 2027 Revenue Outlook, RBC Says

MT Newswires Live10-12 23:30

Aevex (AVEX) investors remain focused on the company's 2027 outlook, as about 65% of its 2026 revenue is tied to Ukraine-related programs, RBC Capital Markets said Sunday in a report.

The stock has fallen about 27% from its IPO price, reflecting concerns about replacing Ukraine revenue, a fast-changing drone competitive landscape, broader defense budget uncertainty after the 2026 US midterm elections, and a "poorly executed" secondary offering soon after the IPO, the report said.

Aevex has highlighted $175 million in funded order activity in Q3 and about $260 million in total bookings across long-range strike programs, one-way attack systems and hypersonics testing, which point to an accelerating pace of contract awards, the report said.

RBC said Aevex's competitive position is strong, noting the company is on track to double production capacity by the end of 2026 and that its CompassX operating platform enhances system integration for customers.

RBC lowered its price target on Aevex stock to $26 from $31 and maintained its outperform rating.

Price: 14.88, Change: +0.24, Percent Change: +1.67

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