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DRO: Index Inclusion And Defence Partnerships Will Support Future Upside Potential

DRO: Joining Major Indexes And Key Defense Contracts Will Drive Demand

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DRO
AnalystConsensusTarget
Not Invested
Published 27 Jul 2025

Update shared on 16 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
360.7%
7D
44.5%

Analysts have modestly increased their price target for DroneShield to $5.15, reflecting slightly higher long term growth and valuation assumptions, despite largely unchanged fair value estimates.

What's in the News

  • Critical Infrastructure Technologies signs a new NDA with DroneShield to integrate Counter Unmanned Aerial Systems capabilities into the Nexus 20 platform requested by the Ukrainian Ministry of Defence, advancing design work on a secure, resilient defence system (Key Developments)
  • The Nexus 20 program, covering 50 platforms, moves forward with parallel telecommunications and C UAS integration in partnership frameworks that already include Babcock International, Nokia, and Ericsson (Key Developments)
  • DroneShield is added to the S and P ASX 200 Index, which may increase its visibility and potential inclusion in institutional portfolios (Key Developments)
  • DroneShield is also added to the S and P ASX 200 Industrials Sector Index, reinforcing its status as a notable participant in the Australian industrials universe (Key Developments)

Valuation Changes

  • Fair Value: Unchanged at A$5.15 per share, indicating stable long term intrinsic value assumptions.
  • Discount Rate: Risen slightly from 7.16 percent to 7.19 percent, reflecting a marginally higher required return on equity.
  • Revenue Growth: Effectively unchanged at about 64.26 percent, signaling no material revision to long term top line expectations.
  • Net Profit Margin: Essentially flat at around 24.87 percent, indicating steady profitability assumptions over the forecast period.
  • Future P/E: Edged up slightly from 47.31x to 47.36x, suggesting a modestly higher valuation multiple applied to future earnings.

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