Needham Starts Red Cat Holdings Inc. (RCAT) at Buy, 'RCAT Set To Pounce On SRR2, USV & International Ramp'

Needham analyst Austin Bohliq initiates coverage on Red Cat Holdings Inc. (NASDAQ: RCAT) with a Buy rating and a price target of $17.00.

The analyst comments "We are initiating coverage of Red Cat, with a Buy rating and $17 PT. We believe the 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. We think the company’s most significant near-term opportunity is the U.S. Army’s Short Range Reconnaissance Tranche 2 (SRR2) program of record, which we believe is positioned to significantly ramp into a $200M+ opportunity over the next 2 years. Coupled with their broader UAS portfolio and expansion into unmanned surface vehicles, RCAT is positioned at the center of a $15B U.S. defense spending cycle on next-gen unmanned solutions. We see multi-year tailwinds from SRR2, accelerating domestic and international defense spend and new domain expansion driving significant growth."

For an analyst ratings summary and ratings history on Red Cat Holdings Inc. click here. For more ratings news on Red Cat Holdings Inc. click here.

Shares of Red Cat Holdings Inc. closed at $11.52 yesterday.

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