Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - H.C. Wainwright lowered its price target on Draganfly Inc. (NASDAQ:DPRO) to $3.50 from $5.00 on Friday, while maintaining a Buy rating on the drone manufacturer’s stock. According to InvestingPro data, DPRO currently trades at $2.32, with a market capitalization of $32.05 million. The stock has shown significant volatility, trading between $1.55 and $6.09 over the past 52 weeks.
The firm cited disappointing revenue performance as a key factor in its decision, noting that Draganfly’s 2025 revenue is currently tracking at C$4.9 million, below the C$5.6 million recorded in 2024. Despite this slowdown, H.C. Wainwright expressed confidence in the company’s improved positioning to become a long-term winner in the drone space. InvestingPro analysis reveals that while the company maintains a gross profit margin of 28.69%, it’s currently experiencing rapid cash burn - one of several key metrics available in the comprehensive Pro Research Report.
Recent developments supporting this outlook include Draganfly’s announced pilot program with the Cochise County Sheriff along the Arizona-Mexico border and the delivery of Flex (NASDAQ:FLEX) FPV systems to a major U.S. prime defense contractor. The company is also expected to benefit from shifts in global defense spending, with Canada already announcing a C$9.0 billion incremental increase this fiscal year. Revenue forecasts from InvestingPro suggest potential growth of 63% for FY2025, though the company’s overall financial health score remains weak.
H.C. Wainwright highlighted Draganfly’s expanded manufacturing facilities as a key differentiator that will allow the business to produce drones at scale, potentially attracting customers including the U.S. Department of Defense. The firm noted that a single Department of Defense or military order could materially change the company’s revenue trajectory.
The price target reduction also reflects a higher share count following a recent capital raise by Draganfly, though the firm maintains that as revenue begins to scale in coming quarters, the path to profitability should become clearer.
In other recent news, Draganfly Inc. reported a 16.4% increase in revenue for Q1 2025, reaching $1.55 million, despite facing a comprehensive loss of $3.4 million. The company remains optimistic about future growth, driven by new product launches and strategic partnerships, as highlighted in their earnings call. Additionally, Draganfly announced a public offering priced at $2.50 per unit, aiming to raise approximately $13.75 million in gross proceeds, with Maxim Group LLC serving as the sole placement agent. The proceeds will be used for general corporate purposes, including funding new product demand and research and development.
Draganfly’s collaboration with the Cochise County Sheriff’s Department will enhance border surveillance using their drones, aligning with an executive order to bolster American leadership in unmanned aerial systems. The company also initiated the delivery of its Flex FPV drones to a major U.S. military contractor, designed for versatility and rapid interchangeability. Furthermore, Draganfly’s Drone Recharging Operational Payload System (DROPS) achieved a 100% success rate in a U.S. Army experiment, showcasing its potential in autonomous military resupply operations. These developments reflect Draganfly’s ongoing efforts to expand its market presence and technological capabilities.
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