Ondas Holdings: Strategic Growth Potential and Strong Financial Position Justify Buy Rating

Analyst Matthew Galinko from Maxim Group maintained a Buy rating on Ondas Holdings (ONDS – Research Report) and keeping the price target at $1.50.

Matthew Galinko has given his Buy rating due to a combination of factors that highlight Ondas Holdings’ potential for growth. The company’s revenue for the first quarter of 2025 showed a significant increase compared to the previous year, primarily driven by its drone segment, Ondas Autonomous Systems (OAS). Despite missing initial revenue estimates, the management’s reaffirmation of a substantial revenue target for 2025 underscores confidence in future growth, particularly with increasing demand for their counter-drone technology.
Additionally, the company’s strategic positioning, with increasing military spending from NATO members amid geopolitical tensions, is seen as a favorable development for Ondas Holdings. The company also reported a healthy cash position and a reduction in convertible debt, which, despite leading to a higher share count, is viewed positively as it reduces financial leverage. These factors, combined with an attractive valuation based on future revenue estimates, support the Buy rating and the price target set by Galinko.

Galinko covers the Technology sector, focusing on stocks such as Adeia, Unisys, and Ondas Holdings. According to TipRanks, Galinko has an average return of -3.8% and a 38.84% success rate on recommended stocks.

In another report released yesterday, Lake Street also reiterated a Buy rating on the stock with a $2.50 price target.