Shares of Unusual Machines Inc UMAC skyrocketed more than 375% over the past month on news that Donald Trump Jr is joining its advisory board.
The company is entering military drone components, which is expected to generate "material sales" in the fourth quarter, according to Maxim Group.
Analyst Matthew Galinko initiated coverage of Unusual Machines with a Buy rating and a price target of $18.
The Unusual Machines Thesis: Bipartisan legislation blocking some or all of China-based DJI drone products in the US will benefit US suppliers, Galinko said in the initiation note.
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The focus on US-made drones by bipartisan legislation and the incoming Trump administration could drive the company to generate revenue growth of 98% in 2025 and 67% in 2026, he added.
Unusual Machines is well positioned to capitalize on the growing military opportunity, with its Board of Directors being joined by the CEO of Red Cat Holdings Inc RCAT, "one of the preeminent emerging small drone suppliers to the U.S. military," the analyst noted.
"With revenue growth from military, we believe UMAC's low overhead business should be self sufficient in the coming years — but capital will likely be needed by early-2026," Galinko further wrote.
UMAC Price Action: Shares of Unusual Machines were up 5.52% to $11.85 at the time of publication on Wednesday late morning.
Read More: What’s Going On With AI Drone Company ZenaTech Stock Today?
Image: Shutterstock/ Dmitry Kalinovsky
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