Unusual Machines Inc. (UMAC:NYSEAMERICAN) stands to benefit from President Donald Trump's June 6 Executive Order mandating, among other provisions, that federal agencies use domestically made drones and drone parts and support exports of the same, reported Litchfield Hills Research Analyst Barry Sine in a June 9 research note.
"We see this order as significantly improving the prospects for Unusual Machines' business," Sine wrote.
117% Implied Return
On the news that Trump signed the Executive Order, Litchfield Hills reiterated its $20 per share price target on the Florida-based company, trading at the time of Sine's report at $9.20 per share, the analyst noted. From that price, the return to target is 117%.
Unusual Machines remains a Buy.
Sine reported that when he prepared his report, the company had 25 million shares outstanding, a market cap of $228 million and a 52-week range of $1.13–23.62 per share.
Well-Positioned as U.S. Manufacturer
Sine explained that the U.S. is moving quickly from primarily relying on China for drone and drone parts to acquiring them domestically. This is good news for Unusual Machines as its business is manufacturing drones and drone components and it has first-mover advantage. Already the company is making most of the components that comprise small to midsize drones, including electronics and motors.
"Now, U.S. agency drones will be made in the U.S. from components made in the U.S., and Unusual Machines is a leader in the components industry," the analyst reiterated.
As for the mandate to support the export of U.S.-made drones, this is to include financial support from the Export-Import Bank of the United States and the use of loans and loan guarantees, equity investments and cofinancing, reported Sine.
"We view this as the most relevant for Unusual Machines," the analyst wrote. "We would expect UMAC to use some of these financial tools to support large export orders."
Specifics of Executive Order
In this drone-related Executive Order, Trump instructed the secretaries of numerous U.S. departments, including Transportation, Commerce, Defense, State, Energy, Homeland Security and Justice, to take the outlined steps within the provided time frames to support and help develop the domestic drone industry.
Here are some of the other specific mandates:
Expand commercial UAS operations, by allowing for the use of beyond visual line of sight (BVLOS) drones for commercial and public safety. "This is a needed change as currently, drones are largely limited to line-of-sight applications, limiting services such as ecommerce delivery," Sine commented. "We believe that many of the drones used in these applications will be built using components manufactured by Unusual Machines."
Further integrate drones into the national airspace system so they may operate safely amidst commercial and government planes.
Establish an electric vertical takeoff and landing (eVTOL) pilot program. "This industry is developing larger vehicles capable of transporting people," noted Sine.
Deliver drones to the country's warfighters. This calls for the military to use low-cost, high-performance drones like the ones employed by Russia and Ukraine in their war. "UMAC is perfectly positioned to provide the components to build these drones," noted Sine.
Other Company Updates
In other recent news, Unusual Machines signed a lease for 17,000 square feet of manufacturing space in the industrial complex where its headquarters is located.
"Recall that in January, UMAC hired Brad Mello, an engineer who was instrumental in getting Tesla to volume manufacturing, as vice president of manufacturing," noted Sine.
Also, Unusual Machines' Rotor Riot retail business will hold its popular Rampage event in October in South Carolina at a former nuclear power plant.
"We expect this event to cement its leading position with enthusiasts and lead to a surge in revenue ahead of the holiday shopping season," Sine commented.
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Important Disclosures:
- Unusual Machines Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Unusual Machines Inc.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Disclosures for Litchfield Hills Research and Unusual Machines, June 9, 2025:
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