DRONESHIELD LTD (DRO.AU) saw its stock price plummet 7.54% during intraday trading on Friday, following a negative analyst note from investment firm Jefferies.
The sharp decline came after Jefferies cut its revenue forecast for DroneShield from fiscal year 2026 to fiscal year 2028 by approximately 9% and reduced its earnings-per-share estimates by 5% to 16%. The firm cited a lack of material contract wins and a narrowing delivery window for the downward revisions. Jefferies also expressed caution regarding the timing and near-term earnings impact of the company's European opportunities, noting that even if awarded, any program would likely be released through a series of smaller orders.
Reinforcing a bearish view, Jefferies maintained its underperform rating on DroneShield and significantly reduced its price target to AU$2.05 per share from AU$2.80. The firm stated that the stock is implied to be trading at a material premium compared to sector peers, suggesting it is overvalued at current levels.