Scott Buck, an analyst from H.C. Wainwright, maintained the Buy rating on Draganfly (DPRO – Research Report). The associated price target remains the same with $1.00.
Scott Buck has given his Buy rating due to a combination of factors including Draganfly’s positive business momentum and anticipated revenue growth. Despite a lower than expected revenue in the first quarter of 2024, a sequential increase from the previous quarter was observed. The company’s engagement with various government agencies, particularly the U.S. Department of Defense, has signaled a strong demand for Draganfly’s drone products. This demand is anticipated to potentially max out the company’s manufacturing capacity by the end of 2024, which could lead to a revenue backlog that exceeds current forecasts for 2024 and 2025. Additionally, an equity offering has improved the company’s financial position, preparing it for the expected increase in production.
Buck’s confidence is further bolstered by Draganfly’s disciplined cost control measures, which have kept operating expenses below expectations, resulting in a better than anticipated adjusted EBITDA loss. While acknowledging that revenue may vary quarterly due to delivery schedules, Buck expects this to even out over time. The forecasted revenue growth for 2024, driven by increased product deliveries and larger government contracts, along with ongoing cost discipline, suggests an improving financial performance. Consequently, the analyst maintains a $1.00 price target on DPRO shares, recommending investors to accumulate positions ahead of forthcoming product announcements and deliveries.
Based on the recent corporate insider activity of 54 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 DPRO in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
