Red Cat Holdings (RCAT) shares jumped roughly 9% on Tuesday after H.C. Wainwright initiated coverage with a Buy rating and a $20 price target, implying nearly 100% upside from the trading range at the time. Analyst Amit Dayal described the company as a “one-stop shop” for American-made drone systems covering air, land, and sea. Red Cat’s portfolio includes Teal Drones, the Black Widow small UAS — winner of the U.S. Army’s Short Range Reconnaissance Program — and recent acquisition Quaze Technologies for wireless drone charging. Despite soaring revenue, the company has never posted a profit and no analyst sees profitability through 2028. A $225 million public offering was priced at $9.40 per share earlier in the month.
Meanwhile, Ondas Holdings (ONDS) reported Q1 2026 revenue of $50.1 million, a growth of more than 1,000% year-over-year, and raised its full-year revenue target to at least $390 million. The company’s backlog reached approximately $457 million, fueled by counter-unmanned aircraft systems and a partnership with Palantir. Gross margin came in at 49%, though it still posted an adjusted EBITDA loss. Analysts remain broadly positive: Red Cat holds a consensus Buy rating with an average price target around $20.50, while Ondas carries a Moderate Buy consensus and a $17.25 target. Both stocks remain speculative, with profitability dependent on future defense contract execution.
