Needham initiates coverage on Ondas stock with Buy rating and $5 price target

Published 19/08/2025, 13:12
Needham initiates coverage on Ondas stock with Buy rating and $5 price target

Investing.com - Needham initiated coverage on Ondas Holdings Inc. (NASDAQ:ONDS) with a Buy rating and a price target of $5.00 on Tuesday. The stock, which has surged over 180% in the past six months according to InvestingPro data, maintains a strong liquidity position with a current ratio of 2.9x.

The research firm added Ondas to the Needham Conviction List, signaling strong confidence in the unmanned aerial systems (UAS) company’s growth potential.

Needham believes the UAS industry is entering a multi-year supercycle, positioning Ondas as one of the best-situated U.S.-based pure-play drone companies to capture increasing demand for autonomous offensive and defensive platforms.

The firm highlighted Ondas’s end-to-end portfolio targeting high-growth sectors including defense, homeland security, DFR, and critical infrastructure markets, which are being unlocked by favorable U.S. legislation and global investment in UAS and counter-UAS technologies.

Needham identified a near-term $5 billion-plus market opportunity for Ondas, along with a $1 billion-plus U.S. rail networking opportunity, projecting the company will deliver industry-leading growth through its scalable operating platform and strategic M&A potential.

In other recent news, Ondas Holdings Inc. reported a significant 555% revenue growth in the second quarter, surpassing Northland’s estimates and prompting the research firm to raise its stock price target to $5. Additionally, Ondas announced a definitive agreement to acquire Israeli robotics firm Apeiro Motion for $12 million, a move expected to enhance its capabilities in ground robotics and fiber optic communications. The acquisition is anticipated to close in the third quarter of 2025. Furthermore, Ondas completed a public offering, raising approximately $163 million in net proceeds, which will be used for working capital and potential strategic transactions. The offering included an over-allotment option that was fully exercised. In leadership developments, Ondas appointed Dr. Irit Idan, a defense technology expert, to its advisory board, bringing experience from RAFAEL Advanced Defense Systems and the SoftBank (TYO:9984) Vision Fund. These developments reflect Ondas’ ongoing strategic growth initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.