The DroneShield Ltd (ASX: DRO) share price has been on a real journey over the past year.

After reaching a 52-week high of $6.70, the counter-drone technology company’s shares are now trading around $1.67 on Friday.

Despite this, I think there are still reasons to be positive about the company’s future.

So, could the DroneShield share price climb back above $2.00 in 2027?

The growth opportunity remains substantial

One reason I remain interested in DroneShield is the growing importance of counter-drone technology.

The use of drones in modern warfare has demonstrated how relatively inexpensive equipment can threaten military vehicles, critical infrastructure, and personnel.

Governments are responding by investing in systems capable of detecting, tracking, and defeating these threats.

DroneShield has positioned itself in this market with a range of products designed for military, government, and security customers. And I think the company’s recent progress in the United States is particularly encouraging.

In September, DroneShield secured a place on a US$500 million procurement contract covering counter-drone technology for American homeland defence requirements.

This isn’t a guaranteed US$500 million in revenue, but it provides another avenue for the company to win business in one of the world’s largest defence markets.

If DroneShield can build on that momentum and secure further contracts during 2027, I think investors could become considerably more confident about its growth prospects.

Profitable growth will be important

Winning contracts is one thing, but I would also want to see DroneShield turn that demand into sustainable profits.

The company has been investing in manufacturing capacity, product development, and its international operations to prepare for a much larger business. Those investments could pay off handsomely if sales continue increasing.

I am also interested in its growing software and support offering. DroneShield recently launched Mission Ready Services, which brings software updates, technical support, and training together under a subscription model.

With thousands of software-enabled devices already deployed, there is an opportunity to generate additional revenue from customers after the initial equipment sale.

That could gradually improve the consistency of earnings in an industry where major defence orders can be irregular.

For me, demonstrating that it can grow revenue while improving profitability would be one of the strongest reasons for investors to reassess the DroneShield share price.

What could hold the DroneShield share price back?

There are still some significant issues to consider. Short sellers have taken a substantial interest in DroneShield, with reported short positions representing around 15.2% of shares on issue in early October.

That suggests a considerable number of market participants are positioning for further share price weakness.

The ongoing Australian Securities and Investments Commission (ASIC) investigation is another source of uncertainty.

The investigation relates to company announcements and information provided to the ASX in November 2025, alongside trading in DroneShield shares during that period.

There is no certainty about what action, if any, will result, but I think investors will want to see the matter resolved before confidence can fully recover.

These issues could continue weighing on the shares even if the business performs well.

Foolish takeaway

At $1.67, the DroneShield share price would need to rise around 20% to reach $2.00.

Considering the shares traded as high as $6.70 during the past year, I do not think that is an unreasonable target, although the previous high is certainly no guarantee of a recovery.

If DroneShield keeps winning contracts, grows profitably, and makes progress towards resolving its governance uncertainties, I think there is every chance the shares could move beyond $2.00 in 2027.

I would expect plenty of volatility along the way, but I remain positive on the company’s long-term growth opportunity.

The post Could the DroneShield share price reach $2 in 2027? appeared first on The Motley Fool Australia.

More reading

• Life360 vs Droneshield: Which ASX tech stock is a better buy?
• Droneshield vs NextDC: Which ASX tech share is the better buy?
• Should I invest $1,000 into DroneShield shares?
• These are the 10 most shorted ASX shares
• Droneshield vs Zip Co: Which tech share is the better ASX growth pick?

Motley Fool contributor Grace Alvino has positions in DroneShield. 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.

Woodside Energy Group Ltd (ASX: WDS) shares could be considered a leading contender for passive income on the ASX.

It’s not the most consistent business with its dividend payments. Profit and payouts can be volatile because energy prices can shift significantly over a short period of time.

Woodside’s profit rose this year due to higher energy prices. Analysts now project that a large dividend could be coming in 2027.

Let’s take a look at what’s forecast for Woodside shares in FY27 and then what would be required for $12,000 of passive income.

Dividend projection for Woodside shares

According to Commsec, analyst predictions suggest there could be a large increase in profitability in the 2027 financial year. At this stage, experts are forecasting that earnings per share (EPS) could rise by 21% in FY27.

Project progress may be responsible for some of that potential growth, but higher energy prices are obviously a key factor.

Normal global energy flows, including refinery-related activities, have not yet returned due to conflicts and stalemates in the Northern Hemisphere.

If Woodside ties its FY27 annual dividend payment to a certain dividend payout ratio, then the rise in forecast earnings is very likely to lead to a higher dividend payment.

The ASX energy share is currently projected by analysts to hike its 2027 financial year annual dividend by 21.75% to $2.16 for Australian investors. At the current Woodside share price, that translates into a dividend yield of 6.9% excluding franking credits and 9.9% grossed-up for franking credits.

Of course, subsequent years may not have a dividend yield as strong as that.

What would it take for $12,000 of passive income?

Reaching $12,000 in passive income from Woodside could make it an appealing investment among ASX blue-chip shares, given that it’s in a different sector from the major ASX bank and mining shares.

Receiving $12,000 of annual passive income from the ASX energy share translates into $1,000 per year, if we average that out to a monthly figure.

To reach the goal, it depends on whether investors include or exclude franking credits from the total.

If we exclude franking credits, then an investor would need 5,556 Woodside shares to generate $12,000 of annual dividend cash.

But, if we include franking credits as part of the franking credits, then an Australian investor would only need 3,889 Woodside shares for $12,000 of grossed-up dividend income.

Analysts are fairly mixed on whether the Woodside share price is an attractive buy right now. According to Commsec’s collation of analyst opinions, there are six buy ratings, eight hold ratings and three sell ratings on the business.

Therefore, there could be more compelling ASX share opportunities available than Woodside.

The post How many Woodside shares do I need to buy for $12,000 of passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• Woodside Energy vs Rio Tinto: Which ASX 200 stock is better value?
• Telstra vs Woodside: Which ASX dividend stock comes out on top?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

The value of technology company Codan Ltd (ASX: CDA) soared past $10 billion recently and just kept going, after it announced a large profit upgrade.

But the team at Canaccord Genuity argues that the company’s shares still represent good value, despite the strong run they’ve been on recently.

Drone warfare driving strong growth

Codan has two main divisions: military communications and metal detection. Both divisions have been performing well lately.

But it is the use of the company’s technology in unmanned systems, or drones, which is translating into very rapid revenue growth.

When announcing its upgrade, the company said it expected first-half revenue in its communications division to rise 20% from the orior year.

Codan added:

Demand from conflict regions is currently exceptionally strong, reflecting the proven performance and reliability of our technology in these contested environments. With this elevated demand, Codan expects revenue generated from conflict regions to represent approximately 50% of Communications segment revenue in H1 FY27 (vs. approximately 20% in the previous corresponding period). Codan now expects the Communications segment to deliver H1 FY27 revenue of between $400 million and $410 million. This compares to $221.8 million in the pcp and $506.2 million in full year FY26.  

Management said demand from conflict regions was difficult to predict over the full year, “and accordingly it is too early in the financial year to determine if demand and margin will continue at similar levels in H2 FY27.

The metal detection division (Minelab) was also performing well, driven by strong demand for its new GPZ8000 and Gold Monster 2000 detectors. This division is now expected to slightly exceed the revenue it generated in the second half of FY26.

In terms of group profit, Codan is expecting a net profit in excess of $160 million for the first half, compared to $71.2 million in the first half of FY26 and $175.2 million for the full year.

Broker says expect more to come

Canaccord Genuity said they believed Codan’s forecasts would turn out to be conservative.

They said:

We believe Codan is well placed to beat full year expectations, with management’s conservative second half conflict region assumptions likely to prove too cautious given no end in sight to conflicts such as Ukraine. While Codan trades on an FY27 P/E of 41x, its true forward multiple may prove well below this as further upgrades or consensus beats come through.

Canaccord Genuity said Minelab also remained a strong, high-margin business supported by elevated gold prices.

Canaccord Genuity does not publish share price targets for its top share picks.  

Codan is valued at $11.9 billion, at the time of writing.

The post Up more than 100% in a year, why Codan shares may still be cheap appeared first on The Motley Fool Australia.

More reading

• Tech shares shine while ASX 200 plunges to 4-month low
• BHP vs Codan: Which ASX 200 share is the stronger buy today?
• Buy, hold, sell: CBA, Capstone Copper, Codan shares
• Here are the top 10 ASX 200 shares today
• Which were the best-performing ASX 200 shares in September?

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.