After a price dip in the middle of the week, DroneShield shares clearly rose again on Thursday. A new analyst comment provided tailwind.
• Bell Potter sees 2026 as “Year of the Drone”
• DroneShield with growing competitive advantage, according to analysts
• Buy recommendation confirmed, price target raised
The Australian brokerage firm Bell Potter confirmed its buy recommendation for the shares of the Australian drone defense specialist DroneShield in the middle of the week and at the same time raised its price target from AUD 4.40 to AUD 5.00. The reassessment is based on a recent analysis that focuses on the global need for solutions to detect and respond to unmanned aerial vehicles (counter-UAS). In this context, 2026 is being dubbed by analysts as the “Year of the Drone,” as a wave of government orders and investments is expected that could benefit manufacturers like DroneShield.
“We are convinced that DRO with its market-leading offering […] “The year 2026 is now expected to be a turning point for the entire industry, which is why DroneShield is expected to generate significant orders from its potential order pipeline of A$2.5 billion over the next three to six months, as defense budgets transition to the fiscal year 2026.”
Analysts see market opportunities in the public safety sector
Bell Potter analysts see DroneShield as a major beneficiary of defense trends in modern warfare and believe the company will also benefit from the use of drone defense systems in sporting events, according to The Motley Fool. In particular, the 2026 FIFA World Cup in North America and the associated security budget of around US$250 million for protective measures against drones are seen as possible catalysts for significant contract wins. In addition, the Australian company is also expected to benefit from the America 250 events for protection against unmanned aircraft systems (C-UAS). “We would be disappointed if DRO did not receive significant orders as a result of these events,” the news site quoted Bell Potter analysts as saying.
More sales and profits ahead at DroneShield?
With their research update, the Bell Potter analysts have also revised upwards the sales and profit estimates for DroneShield for the years 2025 to 2027. The adjustments are based, among other things, on the assumption of a lower number of diluted shares, higher operating expenses as a result of accelerated staff expansion and higher sales due to the so-called Safer Skies Act in the USA. The latter gives state and local authorities in the USA the authority to defend against unmanned aviation systems. Taking these factors into account, Bell Potter experts revised up their EPS forecast for the Australian company by “+4%/+8%/+3% for the calendar years 2025-27”, while the revenue forecast for the years 2026 and 2027 was increased by 5 percent each, according to The Motley Fool. According to the analysts, there is even further upward potential in the sales forecast.
This is how DroneShield shares react
Investors reacted positively to this assessment on Thursday: DroneShield shares ultimately rose by 9.49 percent to AUD 4.73 on the Australian stock exchange. However, until Bell Potter reaches its increased price target, there is only a small upside potential of around 5.7 percent.
Editorial team finanzen.net
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