Analyst Austin Bohlig from Needham maintained a Buy rating on Red Cat Holdings and decreased the price target to $12.00 from $17.00.
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Austin Bohlig has given his Buy rating due to a combination of factors that highlight Red Cat Holdings’ potential for future growth. Despite the recent government shutdown and a delay in new product launches impacting near-term sales, the company reported record revenues in the third quarter of 2025, surpassing market expectations. This strong performance, coupled with the Army’s increased commitment to Red Cat’s SRR2 LRP contract, indicates a solid foundation for future success.
Moreover, while the SRR2 FRP contract may be delayed until the first quarter of 2026, the anticipated size of the contract remains substantial, with expectations of an order around $100 million. This, along with the emerging opportunities in the USV market, positions Red Cat Holdings for significant growth in 2026. Bohlig views the current dip in stock prices as a strategic buying opportunity, anticipating that the third quarter marks the beginning of a series of record-breaking quarters for the company.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RCAT in relation to earlier this year.