DroneShield Ltd (DRO)

Hi Sidney,

When the CEO describes a “large pipeline of orders” for DRO he’s referring to potential orders for their products totalling approximately $1.1–1.2 billion across over 110 high-quality government and military opportunities globally.

• DRO  recent wins include $61.6 m and $32.2m deals, less than 10% of the above number.

The market and company clearly expects DRO to win a decent portion of orders over the coming years after the company decided to invest over $13mn in a new production facility in Sydney. At this stage DRO is a “Hot stock in a Hot sector (Defence)” hence its intraday volatility has gone off the charts – on Tuesday, Wednesday and Thursday the stocks trading range was 10-15% each day, a Day Traders dream assuming they’re getting it right.

Valuing DRO on traditional metrics is tough, and we’d get something with a $1 handle on it. Capped at $3bn and doing ~$35m in profit this year means buying DRO is all about the hype and the momentum…From a technical trading perspective, Shawn likes the stock into dips towards the $3-3.25 area but its going to be a volatile ride and we wouldn’t be chasing it into strength.

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Droneshield Ltd (DRO)

LAST UPDATED 17/07/2025 17:43

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Droneshield Ltd (DRO)

LAST UPDATED 17/07/2025 17:43