Draganfly (DPRO – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on March 28. Analyst Matthew Galinko from Maxim Group maintained a Buy rating on the stock and has a $7.00 price target.
Matthew Galinko has given his Buy rating due to a combination of factors that highlight both the challenges and opportunities for Draganfly. Despite the company’s fourth-quarter revenue falling short of expectations, it still showed a significant year-over-year increase, indicating a return to growth. This growth was supported by an expansion in production capacity, which is expected to meet the anticipated demand.
Draganfly’s strategic positioning in the military and commercial drone markets, along with securing defense certifications, suggests potential for increased demand. Additionally, the company’s FAA waiver to operate drones over people and moving vehicles enhances its capabilities in public safety and emergency response sectors. While there are concerns about revenue estimates and adjusted EBITDA losses, the company’s cash position and lack of debt provide a stable financial footing to support operations into mid-2025. These factors collectively contribute to Galinko’s positive outlook and Buy rating for Draganfly.