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TICKERS: DRO; DRSHF

Counterdrone Products Co. Gets US$11M Order
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The defense manufacturer "got off to a flying start in the new year" with this new contract and an increase in its target price, noted a Bell Potter report.

DroneShield Ltd. (DRO:ASX; DRSHF:OTC) received a new order for US$11 million ($11M) worth of its counterdrone defense solutions, and consequently, Bell Potter raised its target price on the Australian firm to US$0.34 per share from US$0.32, reported analyst Daniel Laing in a Jan. 9 research note.

"Positively, this contract is from a completely different customer to the Dec. 22 order,  demonstrating significant demand for the company's products from a variety of sources," Laing wrote. The previous order also was for US$11M.

With these two contracts, Laing pointed out, DroneShield has about US$16.5M in contracted revenue for 2023. This amount equates to 62% of Bell Potter's US$26.5M revenue estimate for the defense manufacturer in 2023.

Whereas Bell Potter did not change any of its 2023 estimates for DroneShield after this order, it did update each valuation used in calculating its price target. This resulted in the US$0.02, or 6.25%, bump up. This new target is US$0.34 per share; the current share price is about US$0.01225.

Bell Potter also maintained its Buy recommendation on DroneShield.

The investment and financial advisory firm made these adjustments, Laing explained, "to reflect improved confidence in the sales pipeline and significant derisking of our forecasts considering the contracted revenue for the calendar year 2023."

Bell Potter also maintained its Buy recommendation on DroneShield.

In other recent news, which Laing relayed, DroneShield successfully deployed its DroneGun Tactical at the recent Brazilian presidential inauguration. It also finished the artificial intelligence-focused Defence Innovation Hub Project.


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Disclosures:
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.

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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, DroneShield Ltd., January 9, 2023

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