● ThinkEquity believes Draganfly is putting its two decades of experience into the market at the right time. Government and corporate sentiment have shifted towards North American manufacturers.
● Draganfly offers a complete product line: multi-rotor, ground robots, fixed-wing aircraft and horizontal flight devices. The company also provides a full contingent of proprietary flight services in major industry verticals. Draganfly has over a decade of experience developing software, sensors and autopilot systems. The company has a multitude of ways to collect data.
● Draganfly's strategic differentiator is its long-standing customer base. The company maintains a critical mass of referenceable and repeat customers. Customers range from a variety of industries including rail, media, manufacturing, energy, and public safety. The company has sold more than 9,000 drones to public safety organizations in the United States.
● Draganfly is pursuing two ways to satisfy customer demand. One is internal organic growth, which includes expanding facilities and hiring people. The other is through acquisitions.
ThinkEquity is forecasting that Draganfly's revenue will grow to $30.1 million in 2023. The 12-month price target of $10 is 10-times the firm's forecast calendar year 2023 sales of $30 million. This valuation multiple is in line with the peer group average valuation multiple.
Based on just the two recent contracts, I believe ThinkEquity will revisit its forecast and price target. Maybe that moves the stock and maybe it doesn't, but we can anticipate it will happen. My preference is for us to get another analyst to enter the fray.
As far as the stock goes, we need to get a close above $3.40 to get through the 50-day simple moving average (SMA). After that, there is a wall at $4. Unfortunately, this is probably going to take time. We're still fighting sellers from the late 2020 and early 2021 Reg A+ offering. Additionally, we have the uplist overhang at $4.00.