Aevex Corp Pure-Play Drone Maker with Potential for Upside; Initiate at Overweight with $33 Price Target

Research evidence excerpt

Aevex Corp Pure-Play Drone Maker with Potential for Upside; Initiate at Overweight with $33 Price Target

J P M O R G A N North America Equity Research

12 May 2026

Initiation

Aevex Corp Overweight

AVEX, AVEX US

Pure-Play Drone Maker with Potential for Upside; Price (11 May 26):$24.41

Initiate at Overweight with $33 Price Target Price Target (Dec-26):$33.00

We’re initiating on Aevex (AVEX US) with a Dec-26 price target of $33, for 35% Aerospace & Defense

ACimplied upside. Aevex operates in a fast-growing market for one-way attack Seth M. Seifman, CFA

drones — also known as loitering munitions — and we think the company is well- (1-212) 622-5597

positioned to grow at a mid-teens rate through 2028. Aevex has historically sold seth.m.seifman@jpmorgan.com

most of its drones to Ukraine and how quickly this revenue stream rolls off and is Alexander Ladd

replaced with sales from other countries is likely to be a key debate among (1-212) 622-0077

investors. alex.ladd@jpmorgan.com

Rocco J Barbero

• Aevex is a leading provider of one-way attack drones to Ukraine. Aevex (1-212) 622-8140

generated ~$430m of total sales last year and ~60% of this came from Ukraine, rocco.j.barbero@jpmorgan.com

where the company has been delivering Group II and III one-way attack drones J.P. Morgan Securities LLC

for use in the country’s war with Russia since 2022. These deliveries have come

through two main programs — first Phoenix Ghost and then EUCOM Deep Quarterly Forecasts (FYE Dec)

Strike — and the latter is set to ramp up further this year, supporting growth in Adj. EPS ($)

Ukraine revenue to ~70% of Aevex’s total sales. 2025A 2026E 2027E

Q1 (0.28) 0.20 0.11

• Aevex will need to secure awards outside Ukraine to meet our forecasts. Q2 (0.13) 0.04 0.12