The DroneShield Ltd (ASX: DRO) share price has been bouncing around in January.
But the good news for shareholders is that the overall trajectory has been upwards, with the counter-drone technology company’s shares up almost 30% year to date.
The even better news is that Bell Potter believes this run can continue.
What is the broker saying?
Bell Potter has been looking at the drone industry and likes what it sees.
As well as favourable defence trends from modern warfare, the broker believes the company stands to benefit from counter-drone usage at sports events.
In fact, it is expecting the company to be a big winner from the upcoming World Cup in North America. Commenting on its opportunity, Bell Potter said:
We believe the key catalyst for DRO in CY26 is the potential awards stemming from the US Public Safety market, notably from the US$250m funds allocated to states hosting the FIFA World Cup and the America 250 events for C-UAS protection. We would be disappointed if DRO did not receive material awards from these events.
The broker also notes that it has boosted its earnings estimates for the medium term to reflect a number of items. It adds:
We revise EPS higher by +4%/+8%/+3% across CY25-27e reflecting: lower diluted shares assumptions; higher tax rate; higher opex with DRO accelerating headcount ahead of expectations; and +5%/+5% higher revenue in CY26/27e due to the enactment of the Safer Skies Act.
Where next for the DroneShield share price?
According to the note, Bell Potter has retained its buy rating on the company’s shares with an improved price target of $5.00 (from $4.40).
Based on the current DroneShield share price of $4.32, this implies potential upside of approximately 16% for investors over the next 12 months.
Commenting on its buy recommendation, the broker said:
We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.
Consequently, we believe DRO should see material contracts flowing from its $2.5b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 47x CY26e EV / EBITDA, DRO trades at a 34% discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the soft-kill C-UAS industry.
The post Is the DroneShield share price heading to $5.00? appeared first on The Motley Fool Australia.
Should you invest $1,000 in DroneShield Limited right now?
Before you buy DroneShield Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and DroneShield Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- 5 things to watch on the ASX 200 on Thursday
- Why 4DMedical and these ASX shares are up 200%+ in just a year
- These 2 ASX All Ords shares tripled in value last year. Can they keep going?
- Here are the top 10 ASX 200 shares today
- Should you buy DroneShield, Westpac, and BHP shares?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Leave a Reply