Investing.com — stocks AeroAmbiente Inc. (NASDAQ:) rose 9.6% following the US Government Accountability Office's (GAO) decision to deny a protest against the Department of the Army's contract award to the company for its bombing drones swooping Switchblade.
The denial of the protest, which was filed in September, marks an important step for AeroVironment, allowing it to continue fulfilling its obligations under the potentially lucrative contract.
The stock's rise reflects investor relief and optimism as the GAO ruling removes significant uncertainty hanging over the company. The stock rose 9.6% in the trading session after the news was published.
Highlighting the positive outcome for AeroVironment, William Blair analyst Louie DiPalma said: “This decision reduces the stock overhang and clears AeroVironment to take subsequent orders for the Switchblade-600.”
The authorization to continue the contract and the possibility of subsequent orders appear to have reinforced investor confidence in the company's future sources of income.
AeroVironment has expressed its intention to comply with its commitments under the contract and with any delivery orders that may be issued during the term of the contract.
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