{"id":204116,"date":"2025-10-06T00:13:13","date_gmt":"2025-10-06T00:13:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/204116\/"},"modified":"2025-10-06T00:13:13","modified_gmt":"2025-10-06T00:13:13","slug":"this-drone-stock-is-a-buy-and-has-major-upside-potential-needham-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/204116\/","title":{"rendered":"This drone stock is a buy and has major upside potential, Needham says"},"content":{"rendered":"<p>Red Cat is poised to notch considerable growth as it expands its defense technology offerings, especially since domestic and international military spending is on the rise. The investment firm initiated a buy rating on Red Cat with a price target of $17 per share, implying roughly 32% upside from Friday&#8217;s close of $12.89. &#8220;We\u00a0believe\u00a0the unmanned aerial systems (UAS) industry is entering a multi-year supercycle, and view Red Cat uniquely positioned to capture accelerating demand for defense-grade small ISR drones,&#8221; Needham analyst Austin Bohlig said Friday in a note to clients. RCAT 1Y mountain RCAT 1-yr chart The drone technology company is likely to grow due to its expansion into unmanned surface vehicles \u2014 a market that is projected to be worth $2.5 billion by 2034, according to research firm GlobalData . Red Cat&#8217;s contract with the U.S.\u00a0Army&#8217;s\u00a0Short Range Reconnaissance Tranche 2 (SRR2) program will support its growth as it could ramp into a $200 million opportunity over the next two years, according to Needham. The firm also sees the acceleration in domestic and international defense spending as a multiyear tailwind for Red Cat. Needham&#8217;s call aligns with other analysts&#8217; stock ratings for Red Cat. All three Wall Street shops that cover the company have a buy or strong buy rating on shares, LSEG data shows. Red Cat shares rose almost 12% on Friday. The stock has rallied about 292% over the past year. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )<\/p>\n","protected":false},"excerpt":{"rendered":"Red Cat is poised to notch considerable growth as it expands its defense technology offerings, especially since domestic&hellip;\n","protected":false},"author":2,"featured_media":204117,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,122,6052,113,67055,114],"class_list":["post-204116","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-business-news","tag-defense","tag-investment-strategy","tag-red-cat-holdings-inc","tag-stock-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/204116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=204116"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/204116\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/204117"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=204116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=204116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=204116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}