Jefferies Financial Group upgraded AEVEX Corp. (NYSE:AVEX) to a strong-buy rating on Thursday. The firm initiated a $26.00 price target, representing significant upside from recent trading levels.
Expanding demand for launched effects, precision strike, and maritime autonomy supports the company's growth and potential for margin upside. AEVEX also recently announced the development of Specter, a new jet-powered autonomous platform.
Jefferies noted that AEVEX shares trade at a 50% discount compared to industry peers. Despite this valuation, the company faces a securities class-action lawsuit regarding its IPO lock-up disclosures. The legal action alleges the company's registration statement was misleading to investors.