Drone firm Red Cat soars over 20% after bullish analyst reports

Red Cat Holdings

03/10/2025 15:48

Updates with analyst commentary

** Shares of Red Cat Holdings RCAT.O up 23.4% at $14.21, a nearly 9-mth high, early Fri after two brokerages issued bullish reports

** RCAT shares rising for 5th straight day, tracking ~40% weekly gain

** Needham initiated coverage of drone tech firm at 'buy' with PT of $17, implying ~48% upside to stock's last close

** The unmanned aerial systems (UAS) industry is entering a "multi-year supercycle," Needham analyst Austin Bohlig said in note, adding RCAT is "uniquely positioned" to capture rising demand for defense-grade small drones

** Also, Northland Capital Markets, which rates RCAT 'outperform', boosted its PT by $2 to $18

** Northland analyst Michael Latimore said RCAT is benefiting from increased demand for small autonomous mobile systems, such as drones and unmanned surface vessels (USV), pointing to the Ukraine war prompting the U.S. Government and militaries globally to accelerate purchases

** The San Juan, Puerto Rico-headquartered RCAT has about $1.7 bln current market cap, per LSEG data

** With move on Fri, RCAT shares up ~11% YTD. The stock closed at $3.29 a year ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))