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Investing.com - H.C. Wainwright raised its price target on Draganfly Inc. (NASDAQ:DPRO) to $6.00 from $3.50 on Thursday, while maintaining a Buy rating on the drone manufacturer’s stock. The stock currently trades at $5.18, with analyst targets ranging from $3.51 to $7.15. According to InvestingPro analysis, the company maintains a strong balance sheet with more cash than debt.
The price target increase follows Draganfly’s announcement that its Commander3 XL UAV has been selected by a major branch of the U.S. Department of Defense for advanced operation initiatives. The procurement was facilitated through a prime contractor.
Draganfly shares jumped 43.5% in Wednesday trading, significantly outperforming the Russell 2000 Index, which rose 1.0% on the same day.
H.C. Wainwright noted that while this announcement will not directly drive material revenue, it represents progress toward larger Department of Defense contracts that could potentially be announced later this year.
The research firm also highlighted that a Department of Defense reclassification of small drones as ammunition should ease acquisition and deployment by field commanders, potentially accelerating purchasing activity for companies like Draganfly.
In other recent news, Draganfly Inc. has announced several significant developments. The company reported a public offering priced at $2.50 per unit, aiming to raise approximately $13.75 million in gross proceeds. These funds are intended for general corporate purposes, including the development and marketing of core products and potential acquisitions. Additionally, Draganfly’s Drone Recharging Operational Payload System (DROPS) achieved a 100% success rate in a U.S. Army test, showcasing its potential in military tactical resupply operations. Draganfly has also started delivering its Flex (NASDAQ:FLEX) FPV drone systems to a major U.S. military contractor, highlighting its growing presence in defense applications.
Moreover, Draganfly has been selected by the Cochise County Sheriff’s Department to enhance border surveillance with its drones, aligning with efforts to bolster American drone capabilities for security. H.C. Wainwright recently lowered its price target for Draganfly to $3.50, citing slow revenue growth but maintaining a Buy rating due to the company’s strategic positioning. Despite a decrease in 2025 revenue projections compared to 2024, the firm remains optimistic about Draganfly’s long-term potential, especially with its expanded manufacturing capabilities and potential military orders. These recent developments underscore Draganfly’s ongoing efforts to expand its footprint in both defense and public safety sectors.
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