Counter Drone Tech Firm Differs From Rest of Market
September 28, 2022 (Investorideas.com Newswire) This company warrants a favorable investment thesis and Buy recommendation based on many factors, noted a Bell Potter report.
DroneShield Ltd. (DRO:ASX; DRSHF:OTC) garnered analyst coverage by financial firm Bell Potter, which initiated it with a Buy recommendation and an AU$0.24 price target, reported analyst Daniel Laing in a September 26, 2022 research note. In comparison, the counter-drone technology manufacturer is currently trading at about AU$0.10 per share.
“DroneShield differentiates itself from the rest of the market by offering an end-to-end counter-drone solution with largely in-house technology,” Laing wrote.
The analyst highlighted the key factors that make this Australian company a compelling investment.
1) DroneShield has exhibited strong recent revenue growth, which is expected to continue. In 2021, the company grew revenue by 89% year over year to AU$10.6 million (AU$10.6M) and is expected to have a “particularly strong” H2/22, noted Laing. DroneShield generates revenue from hardware sales, research and development (R&D) contracts, and software-as-a-service (SaaS). The latter is expected to drive margin expansion and eventually be the company’s primary revenue source.
2) DroneShield has a robust sales pipeline, which suggests long-term demand. The company reported AU$100 million worth of sales opportunities this year and another AU$250M worth for next year plus.
“Potential catalysts include validation of the sales pipeline through consistent contract wins and greater visibility over the pipeline through the calendar year 2023 and beyond,” Laing noted.
3) DroneShield has the chance to expand outside of its core business of counter-drone defense into adjacent markets such as electronic warfare.
“DroneShield’s appointment to the ISREW Panel (intelligence, surveillance, reconnaissance, and electronic warfare) and its ongoing R&D contracts are a strong endorsement of its capabilities in this field and raise the prospect of future revenue streams outside its core competencies,” wrote Laing.
4) The company is well positioned to “capitalize on favorable macroeconomic conditions accelerating structural growth in the market,” Laing pointed out. These include a global increase in defense budgets, rapid growth of the counter-drone defense industry, and domestic defense funding on the part of the Australian government.
5) DroneShield has ample cash and no bank debt, thus does not currently need to raise capital, noted Laing.
6) DroneShield has more than 8,000 shareholders, four of which own more than a 1% interest, indicated Laing. A handful of DroneShield insiders own shares, including Chief Executive Officer and Managing Director Oleg Vornik (3.5%), Non-Executive Chairman Peter James (2.2%), Chief Financial Officer Carla Balanco (0.7%), Chief Technology Officer Angus Bean (0.5%) and Non-Executive Director Jethro Marks (0.2%).
“This aligns the interests of shareholders and management,” Laing wrote.
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: DroneShield Ltd. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of DroneShield Ltd., a company mentioned in this article.
Disclosures For Bell Potter Securities Ltd., DroneShield Ltd., September 26, 2022
This Research Report is a private communication to Clients and is not intended for public circulation or for the use of any third party, without the prior written approval of Bell Potter Securities Limited. The Research Report is for informational purposes only and is not intended as an offer or solicitation for the purpose of sale of a security. Any decision to purchase securities mentioned in the Report must take into account existing public information on such security or any registered prospectus.
This is general investment advice only and does not constitute personal advice to any person. Because this Research Report has been prepared without consideration of any specific client’s financial situation, particular needs and investment objectives (‘relevant personal circumstances’), a Bell Potter Securities Limited Broker (or the financial services licensee, or the representative of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be made aware of your relevant personal circumstances and consulted before any investment decision is made on the basis of this Research Report.
While this Research Report is based on information from sources which are considered reliable, Bell Potter Securities Limited has not verified independently the information contained in this document and Bell Potter Securities Limited and its directors, employees and consultants do not represent, warrant or guarantee expressly or impliedly, that the information contained in this Research Report is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility for updating any advice, views, opinions or recommendations contained in this Research Report or for correcting any error or omission which may have become apparent after the Research Report has been issued.
Bell Potter Securities Research Department has received assistance from the Company referred to in this Research Report including but not limited to discussions with management of the Company. Bell Potter Securities Policy prohibits Research Analysts sending draft Recommendations, Valuations and Price Targets to subject companies. However, it should be presumed that the Author of the Research Report has had discussions with the subject Company to ensure factual accuracy prior to publication.
All opinions, projections and estimates constitute the judgement of the Author as of the Date of the Research Report and these, plus any other information contained in the Research Report, are subject to change without notice. Prices and availability of financial instruments also are subject to change without notice. Notwithstanding other departments within Bell Potter Securities Limited advising the subject Company, information obtained in such role is not used in the preparation of the Research Report.
Although Bell Potter Research does not set a predetermined frequency for publication, if the Research Report is a fundamental equity research report it is the intention of Bell Potter Research to provide research coverage of the covered issuers, including in response to news affecting the issuer. For non-fundamental Research Reports, Bell Potter Research may not provide regular updates to the views, recommendations and facts included in the reports.
Notwithstanding that Bell Potter maintains coverage on, makes recommendations concerning or discusses issuers, Bell Potter Research may be periodically restricted from referencing certain Issuers due to legal or policy reasons. Where the component of a published trade idea is subject to a restriction, the trade idea will be removed from any list of open trade ideas included in the Research Report. Upon lifting of the restriction, the trade idea will either be re-instated in the open trade ideas list if the Analyst continues to support it or it will be officially closed.
Bell Potter Research may provide different research products and services to different classes of clients (for example based upon longterm or short term investment horizons) that may lead to differing conclusions or recommendations that could impact the price of a security contrary to the recommendations in the alternative Research Report, provided each is consistent with the rating system for each respective Research Report. Except in so far as liability under any statute cannot be excluded, Bell Potter Securities Limited and its directors, employees and consultants do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in the document or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of the document or any other person.
In the USA and the UK this Research Report is only for institutional investors. It is not for release, publication or distribution in whole or in part in the two specified countries. In Hong Kong this Research Report is being distributed by Bell Potter Securities (HK) Limited which is licensed and regulated by the Securities and Futures Commission, Hong Kong. In the United States this Research Report is being distributed by Bell Potter Securities (US) LLC which is a registered broker-dealer and member of FINRA. Any person receiving this Research Report from Bell Potter Securities (US) LLC and wishing to transact in any security described herein should do so with Bell Potter Securities (US) LLC.
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com