The DroneShield share has lost a lot of value in the past few weeks – despite its impressive annual increase. Analysts see a possible alternative.
• DroneShield under pressure after leadership changes, insider selling and ASX bust
• Analysts rate Electro Optic Systems as “Buy” and see significant upside potential
• The acquisition of a drone defense system strengthens EOS in a growing, geopolitically relevant market
DroneShield shares recently under pressure
The shares of Australian defense specialist DroneShield have recently lost significant value. Despite a price increase of around 195 percent since the beginning of the year, the shares have recently come under heavy pressure and have moved significantly away from their record high of 6.705 Australian dollars, which they reached in October. Most recently, the titles were worth 2.26 Australian dollars on their home market (as of December 10, 2025).
The last few weeks had damaged the trust of many shareholders: This led to the abrupt resignation of US CEO Matt McCrann. In addition, leading managers – including the CEO and members of the board – sold blocks of shares worth several million Australian dollars. There was also a false order report: a supposedly new US government order turned out to be already known.
Electro Optic Systems shares as an alternative?
While DroneShield’s annual performance continues to impress, some market observers are turning their attention to another Australian defense stock: Electro Optic Systems. The company develops electro-optical technologies and offers products for space information, intelligence, optical and microwave-based systems, and remote-controlled weapon platforms for various military applications. The focus of the revenues is on the defense segment, in which Electro Optic – similar to DroneShield – supplies surveillance, fire control and weapon systems for military customers.
Given the international security situation and increasing defense spending, some investors see Electro Optic Systems as an attractive alternative to DroneShield. Analyst ratings support this view: According to data from TipRanks, all three analysts surveyed rate the stock as a “buy,” resulting in an overall “Strong Buy” rating.
The average price target is 9.76 Australian dollars, representing a change of 113.66 percent from the last price of 4.570 Australian dollars. The highest price target is 11.18 Australian dollars, which would mean a possible price increase of up to 144.64 percent.
The broker Bell Potter is a little more cautious, but also recommends buying the share and gives a price target of 8.10 Australian dollars. A possible end to the Ukraine conflict could have a short-term impact on the price, but the company believes it will not change the long-term growth prospects, reports The Motley Fool Australia. Bell Potter also refers to the recently completed acquisition of a drone defense system from the MARSS Group, which the company considers to be strategically sensible.
Editorial team finanzen.net
Selected leverage products on DroneShield
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on DroneShield
The leverage must be between 2 and 20
Advertising