10 Best Mid Cap Defense Stocks to Buy According to Analysts

2. AeroVironment, Inc. (NASDAQ:AVAV)

Market Cap: $4.13 billion

Share Price Upside Potential: 38.32%

AeroVironment, Inc. (NASDAQ:AVAV) is engaged in the development and delivery of a portfolio of robotics systems and other related services for governments and businesses internationally. The company’s offerings include unmanned aerial vehicles, ground robot systems, and loitering munition systems, among others. The stock has surged by 15.67% over the past week on the back of several positive recent developments.

On April 1, AeroVironment, Inc. (NASDAQ:AVAV)’s stockholders approved the acquisition of BlueHalo LLC, a leading space and defense engineering company. The transaction is expected to close in May and will help the company further expand its portfolio amid ongoing geopolitical tensions in different parts of the world.

In March, AeroVironment, Inc. (NASDAQ:AVAV) received a major contract to deliver 41 advanced uncrewed ground vehicles to Germany through its wholly owned subsidiary, Telerob. The deliveries will begin during the summer of 2025 and run through 2027.

As a result, on April 8, Raymond James upgraded AeroVironment, Inc. (NASDAQ:AVAV) from Market Perform to Strong Buy, and set a price target of $200 per share for the stock. The analyst’s optimistic outlook for the company stems from its strategic initiatives like the BlueHalo acquisition, as well as its current standing with America’s defense spending expected to see a surge.

Wall Street analysts are bullish on AeroVironment, Inc. (NASDAQ:AVAV) with a consensus Buy rating and an average share price upside potential of 38.32%. Investor sentiment continues to improve as well. According to Insider Monkey’s database for Q4 2024, 24 hedge funds held a stake in the company, up from 22 at the end of the third quarter. It is one of the best mid cap stocks to buy now.