Palladyne AI price target lowered to $11 from $15 at Alliance Global

Alliance Global lowered the firm’s price target on Palladyne AI (PDYN) to $11 from $15 and keeps a Buy rating on the shares after the company acquired GuideTech, Warnke Precision Machining, and MKR Fabricators to provide new manufacturing and technological capabilities. The firm, which believes this combined solution set has Palladyne aligned with the Department of Defense’s plan to deliver “autonomous” tactical drones at scale, notes that its lower target reflects the increased share count and a lower multiple due to the lower long-term gross margin profile of the company.