Australia's Electro Optic Systems extend gains following contract win; Canaccord upgrades

Canaccord Genuity

16/12/2025 24:28

** Shares of Electro Optic Systems EOS.AX up as much as 13.5% to A$7.335, their highest level since Oct 14
** Shares of defense tech co extend gains after entering into $80 million 100kW High Energy
 Laser Weapon (HELW) contract  with a customer in the Republic of Korea
** Canaccord Genuity upgrades the stock to "Buy" from "Speculative Buy", raises revenue forecasts for FY26 and FY27 by 5% and 4%

** Brokerage sees deals with other countries to materialise over the coming months

** Sees potential for manufacturing of units in South Korea, highlights strategic importance of units in critical infrastructure protection given geopolitical tensions

** Three of four analysts rated "Buy" or higher on shares; sole E&P analyst recommends "Hold", as per LSEG-compiled data

** YTD, shares up 449.6%

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))