Jefferies cuts DroneShield PT, says FY26 underlying sales growth appears flat

DroneShield

15/10/2026 20:06

** Jefferies says DroneShield's DRO.AX weekly revenue metric is inflated by previously committed revenue
** Estimates "true" weekly revenue at about A$3.4 million  ($2.35 million) in FY26 versus A$3.5 million in FY25, compared with the company's reported implied growth to between A$4.8 million - A$5.2 million per week
** "Underlying sales momentum appears broadly stalled once prior-period contract wins are excluded" — Jefferies
** Brokerage says revenue could exceed the top end of FY26 guidance given revenue stood at A$261 million as of Oct. 12, but expressed concern that revenue growth is lagging expense growth
** Notes 1H26 operating expenses were A$103 million versus A$42 million a year earlier
** Adds FY26 may be a story of no underlying organic sales acceleration, raising concerns over medium-term growth
** Rates stock as "underperform" and trims price target to A$1.25 from A$1.45 per share
** DRO down over 50% YTD, as of last close


($1 = 1.4457 Australian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))