DroneShield Limited

Recommendation: Buy | Sector: Aerospace and Defense

DroneShield Limited engages in the development, commercialization, and sale of hardware and software technology for drone detection and security in Australia and the United States. It offers DroneGun Tactical, a portable rifle shape drone disruptor, causing the drone to safely land, or fly back to the starting point; DroneGun Mk4, a rugged handheld counter-unmanned aircraft system (UAS) effector; DroneGun Mk3, a pistol shaped compact drone disruptor; RfPatrol Mk2, a wearable AI-enabled multi-mission detection tool; DroneSentry-X, a cross-vehicle compatible automated 360° detect and defeat device; and DroneSentry-X Mk2 is a software-defined detection and adaptive disruption system.

Fundamental

DroneShield produces detecting equipment and counterdrone weapons of both military and commercial quality. The majority of their armament systems, including the DroneGun, are portable jamming devices made to interfere with a UAV's communication link. Additionally, DroneShield manufactures a range of integrated radar/electronic warfare devices and RF detection systems that may be installed on vehicles or carried by a man. The nature of the industry in which EOS operates suggests a significant proportion of future sales revenue will likely materialise in the form of one-off contracts, often with no recurring revenue.

Technical Analysis

Source: Trading view

Last week the stock has reached to its all-time high levels which shows that the upside will remain intact in the stock for coming months. Obviously all the indicators are positive and supporting upwards momentum to continue over short to medium term. StockBinge recommends a “Buy” at the closing price of $0.930 (as of 23rd April 2024) with stop loss of $0.80 and Target will be $1.20 for few months.

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