Which does MM prefer DRO or ART?

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Question asked 04/03/2023

Which does MM prefer DRO or ART?

Hi James, ART is a tech stock which MM likes and has on the radar to buy in at some point. This has been mentioned a few times in the reports I diligently read daily. However Id like to know what your thoughts are on DRO which is also a tech stock and has a similar market cap but is doing really fitting things successfully and which the world needs right now. Thank you.

Answer

Hi Maureen,

It’s difficult to compare DRO and ART given they are vastly different businesses.

Dronshield has had a significant step up in revenue on the back of strong demand through 2022. Margins are expected to remain robust but there is a risk to sustaining this in our view, plus they may see some wind back in demand.

We like ART, though concede the market isn’t attributing much value to loss making tech stocks at the moment. We like their model and see it as easily replicable in a number of geographies and will be watching their growth execution in the UK and USA closely.

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DroneShield (DRO)

LAST UPDATED 03/03/2023 13:15

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