Ondas Holdings stock soars after Oppenheimer upgrade to Outperform

Investing.com -- Ondas Holdings Inc. (NASDAQ:ONDS) stock surged 18% Friday after Oppenheimer analyst Tim Horan upgraded the company from Perform to Outperform with a $12.00 price target.

The upgrade follows Ondas’ strong third quarter performance, where the company reported revenue of $10.1 million, more than six times higher compared to the same period last year. The company achieved a gross margin of 26%, which Oppenheimer believes could approach 70% over the next few years.

Horan highlighted the company’s robust financial position with $840 million in pro forma cash and noted strong demand momentum in Ondas Autonomous Systems (OAS), which has reached an all-time-high backlog of $22.2 million.

The analyst expressed confidence in Ondas’ open platform technology, built from the ground up with a robust ecosystem of technologies, partners, and programs. According to Oppenheimer, the company is uniquely positioned to provide combined air and ground protection and monitoring solutions.

Oppenheimer expects this positioning to generate what they describe as a "virtuous flywheel" of expanded marketing, distribution, technology, and manufacturing partners. The firm also noted that the Counter-UAS total addressable market is projected to grow from $2.4 billion in 2024 to $10.5 billion by 2027.

Shares of Ondas Holdings closed at $6.56 on Thursday before the upgrade was announced.

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