Aerovironment stock rises in premarket after BofA upgrade as drone demand surges

AeroVironment share price [https://invezz.com/wp-content/uploads/2025/09/20250918_1813_AeroVironment-Drones-Soar_simple_compose_01k5edhb32en8vngcgx6nybx2x.png] Shares of unmanned military technology provider AeroVironment (NASDAQ: AVAV) gained on Thursday after securing a fresh endorsement from Wall Street. Bank of America Securities initiated coverage on the drone maker’s stock with a Buy rating and a $300 price target, citing new government policies designed to boost US drone production as a growth catalyst. ANALYST UPGRADE HIGHLIGHTS DRONE MOMENTUM BofA Securities analyst Ronald Epstein launched coverage of AeroVironment with an optimistic outlook, pointing to Defense Secretary Pete Hegseth’s July policy shift as a key factor supporting long-term demand. The initiative, described as aimed at “unleashing American drone dominance,” introduced measures to accelerate drone production, expand supply to combat units, and integrate drone training for officers. Epstein called the policy change a “pivotal positive catalyst” for AeroVironment, reflecting heightened government support for unmanned systems. He set a $300 target price for the stock, a level slightly above the current Wall Street average. Shares responded positively, rising 2.03% in premarket trading to $277.60, outpacing broader market futures, with the S&P 500 and Dow Jones Industrial Average each gaining…