Cantor Fitzgerald reiterates Overweight rating on AIRO Group stock
Investing.com
Published Jul 15, 2025 07:51AM ET
Investing.com - Cantor Fitzgerald maintained its Overweight rating and $35.00 price target on AIRO Group (NASDAQ:AIRO) in a research note released Tuesday. The stock, currently trading at $28.28, has shown strong momentum with a 30.5% gain over the past week. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 67%.
The investment firm's analysis is based on a weighted average of two valuation approaches: EV/EBITDA (50%) and FCF yield (50%), measured against fiscal year 2027 estimates. InvestingPro analysis suggests the stock is currently trading slightly above its Fair Value, with an EV/EBITDA multiple of 25.4x.
Cantor Fitzgerald positions AIRO within its Defense Tech coverage framework, applying valuation metrics that lean toward Space multiples due to similarities in contract structures and growth visibility compared to GovTech names with slower-growing Civil and Cost+ exposure.
The firm targets a discount to Kratos Defense (NASDAQ:KTOS) and AeroVironment (NASDAQ:AVAV) for AIRO, citing capital intensity and risk associated with the company's upcoming EVTOL (Electric Vertical Takeoff and Landing) program.
Cantor Fitzgerald notes that funding from Canadian federal programs likely mitigates potential liquidity concerns related to AIRO's capital requirements.
In other recent news, AIRO Group announced plans to establish a new manufacturing and engineering development facility in the United States. This expansion aims to increase production capacity for the company's RQ-35 ISR Drone, which has seen significant use in defense and security sectors. The company has not disclosed specific details about the location or investment amount for the new facility. Mizuho reaffirmed its Outperform rating on AIRO Group, maintaining a $31.00 price target, following the U.S. Defense Department's announcement of reforms to drone procurement practices. Cantor Fitzgerald initiated coverage on AIRO Group with an Overweight rating and a $35.00 price target, citing the company's potential as a defense technology growth opportunity. BTIG also initiated coverage with a Buy rating and a $26.00 price target, highlighting AIRO's position in the Drones segment as a key growth driver. Mizuho, which also initiated coverage with an Outperform rating, noted that AIRO's drone backlog exceeds $250 million, providing near-term revenue coverage. Additionally, the firm provided EBITDA estimates for the company, projecting $19.1 million for 2025 and $40.5 million for 2027.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.