Scott Buck, an analyst from H.C. Wainwright, reiterated the Buy rating on Draganfly (DPRO – Research Report). The associated price target is $1.00.
Scott Buck has given his Buy rating due to a combination of factors including Draganfly’s expected operational improvements and market demand. Despite the share dilution resulting from the recent capital raise, the company’s stock declined significantly, but the long-term operational expectations remain unchanged. The capital injection is believed to provide near-term financial stability, and the anticipation is that as Draganfly’s operating results improve in 2024, there will be a substantial increase in revenue. This increase is projected to be driven by strong demand from both government and commercial sectors, and the company’s recent investments are expected to position it favorably to fulfill large orders.
Moreover, the use of Draganfly’s products in the ongoing conflict in Ukraine has drawn new interest and is likely to drive further demand. Buck predicts that as revenue grows significantly in 2024, the path to profitability will become more apparent, attracting new investors. Despite the reduction in the price target due to share dilution, the $1.00 target price still suggests a considerable upside from current trading levels. Buck also notes the potential for the company to experience valuation multiple expansion as it shifts towards higher margin services. However, risks such as further dilution, competition, and execution challenges are acknowledged.
According to TipRanks, Buck is an analyst with an average return of -17.6% and a 31.84% success rate. Buck covers the Technology sector, focusing on stocks such as SoundHound AI, Inc Class A, Lightpath Technologies, and Mitek Systems.
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Draganfly (DPRO) Company Description:
Draganfly Inc is a Canada based company. It is engaged in the provision of engineering services and the manufacture of commercial unmanned vehicle systems and software. The company operates in Canada, the United States, and Internationally. It generates revenue through Product sales and Consulting. Product sales revenue consists of internally assembled multi-rotor helicopters, industrial aerial video systems, civilian small unmanned aerial systems or vehicles, and wireless video systems. Consulting service includes custom engineering and training and simulation consulting.
Read More on DPRO:
- Draganfly 13.4M share Spot Secondary priced at 27c
- Draganfly Announces Pricing of US$3.6 Million Underwritten Public Offering
- Draganfly announces offering of common stock, warrants
- Draganfly selected as exclusive partner of UGoC to provide UAV solutions
- Draganfly Selected as an Exclusive Partner of the Ulkatcho First Nation’s, Ulkatcho Group of Companies to provide UAV Solutions, Services, Training, Public Safety, and Emergency Response within the Ulkatcho First Nation
