Draganfly (CNSX:DPRO) Is Up 18.2% After Securing Major U.S. Defense Partnerships and Army Drone Order – Has The Bull Case Changed?

• Draganfly Inc. recently announced a formal partnership with Global Ordnance, a U.S. Defense Logistics Agency contractor, to accelerate U.S. defense adoption of its unmanned aerial systems, alongside its earlier selection by the U.S. Army to supply Flex FPV drone systems and establish on-site manufacturing for these drones.
• This collaboration signals Draganfly's expanded penetration into the U.S. defense market, while supporting the military's shift to decentralized innovation and enhanced supply chain resilience.
• We'll explore how Draganfly's defense sector expansion and technology integration shape its evolving investment narrative.

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What Is Draganfly's Investment Narrative?

To be a shareholder in Draganfly right now, it’s fair to say you need to believe in the continued migration of U.S. defense and security budgets toward unmanned systems and sovereign manufacturing. The new partnership with Global Ordnance, and Draganfly’s expanded Army collaboration, directly address two of the most important short-term catalysts for the company: rapid U.S. defense adoption of its drones and improved supply chain resilience. These moves could help sustain the recent surge in market enthusiasm, as shown by substantial price gains. That said, the recently filed $200 million shelf registration could be a double-edged sword: while providing financial flexibility for future growth and defense ramp-up, it also increases the risk of further share dilution, an ongoing concern for current investors. The overall risk profile may have shifted, with greater near-term opportunity now coupled with heightened dilution risk and the company’s persistent lack of profitability, even as revenue forecasts remain strong and partnerships expand.

But dilution risk remains an important concern that investors should keep top of mind. The analysis detailed in our Draganfly valuation report hints at an inflated share price compared to its estimated value.

Exploring Other Perspectives

With seven fair value estimates from the Simply Wall St Community ranging from US$4.48 to US$20.33, opinions on Draganfly’s potential run the gamut. This diversity highlights how quickly catalysts like U.S. defense partnerships and new funding efforts can reshape expectations across the market. Wide variance in outlooks shows just how crucial it is to consider alternative perspectives on both upside and ongoing dilution risks.

Explore 7 other fair value estimates on Draganfly - why the stock might be worth less than half the current price!

Build Your Own Draganfly Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Draganfly research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Draganfly research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Draganfly's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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