DroneShield, Australia's biggest defence company, inks a landmark deal with NATO
DroneShield $Droneshield Ltd(DRO.AU$ shares have surged 143% this year, outperforming a lot of tech and AI leaders. Here is what you need to know.
I have been talking about $Droneshield Ltd(DRO.AU$ for years and remember when they won their first US Government contract to supply counter drones to the US military back in 2021. Since then DroneShield has won more contracts to supply drones and roll out drone AI detection technology with more US government departments and with various Australian defence departments. I like the business. I like that it's backed by US and Australian government contracts and it recently inked a deal with NATO.
Their shares have done exceptionally well – but the average analysts thinks its shares have more room to run (although DRO are still little known and only covered by three analysts/investment banks).
And naturally of course their earnings will lift over time - given they just signed with NATO and are already working with US and AU government departments.
If I wanted to buy into DRO personally, I would look for down days to buy into - but that's just me. Everyone has their own strategy and time frame for investing and trading.
At the Australian Shareholders Association (ASA) Annual Conference I presented Buy Hold Sell, alongside Henry Jennings on Sunday May 19 2024. DroneShield was one of the 20 stocks covered. It was one of my most bullish calls for the long term investor.
Below is what you need to know about DRO:
- Shares + 143% YTD.
- Just completed Oversubscribed SPP.
- Entered into earnings upgrade cycle. Bell Potter and Peleton Capital upgrading earnings growth
- Rev +226% in 2023. Rev growth of 76.8% expected this year to $97.4m
- Profitable business. Net income growth of 16.9% last year.
- Signed procurements agreement with NATO
- Biggest customers are Australian & US Government
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
Investment strategist, featured on TV, radio, newspapers.
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151820638 : The outlet of future wealth is AI! The eye of future wealth is AI + military industry
151820638 : The drone defense system will be the most important for Western civilization
️National defense investment project. The business content of DRO company will highlight its importance
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151820638 : Yesterday afternoon, I judged that 95% of DRO's opening today was due to retail investors, and there would be many people who left after short-term profits. Personally, I think there is no need to worry, this is also an opportunity to enter the market.