Analyst Scott Buck from H.C. Wainwright reiterated a Buy rating on Draganfly (DPRO – Research Report) and decreased the price target to $3.50 from $5.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Scott Buck has given his Buy rating due to a combination of factors that highlight Draganfly’s potential in the growing drone market. The company is strategically positioned to benefit from increased demand, particularly in military and border control applications. Recent developments, such as a pilot program with the Cochise County Sheriff and delivery of systems to a major U.S. defense contractor, indicate progress in securing significant contracts.
Furthermore, Draganfly stands to gain from rising global defense budgets, with Canada already increasing its spending, and other NATO countries expected to follow suit. The expansion of manufacturing facilities enhances their ability to produce drones at scale, making them attractive to large clients like the U.S. Department of Defense. Although the timing of revenue growth remains uncertain, the potential for securing large UAV contracts could significantly alter their financial trajectory, paving the way for profitability and attracting new investors. Despite a recent capital raise leading to a higher share count, Buck maintains a positive outlook with a revised price target of $3.50, reflecting a substantial upside from current trading levels.