Red Cat is poised to notch appreciable development because it expands its protection expertise choices, particularly since home and worldwide navy spending is on the rise. The funding agency initiated a buy ranking on Red Cat with a worth goal of $17 per share, implying roughly 32% upside from Friday’s shut of $12.89. “We believe the unmanned aerial systems (UAS) industry is entering a multi-year supercycle, and view Red Cat uniquely positioned to capture accelerating demand for defense-grade small ISR drones,” Needham analyst Austin Bohlig stated Friday in a notice to purchasers. RCAT 1Y mountain RCAT 1-yr chart The drone expertise firm is prone to develop resulting from its growth into unmanned floor automobiles — a market that is projected to be price $2.5 billion by 2034, in response to analysis agency GlobalData . Red Cat’s contract with the U.S. Army’s Short Range Reconnaissance Tranche 2 (SRR2) program will help its development because it may ramp into a $200 million alternative over the following two years, in response to Needham. The agency additionally sees the acceleration in home and worldwide protection spending as a multiyear tailwind for Red Cat. Needham’s name aligns with different analysts’ stock scores for Red Cat. All three Wall Street retailers that cowl the corporate have a buy or robust buy ranking on shares, LSEG knowledge reveals. Red Cat shares rose nearly 12% on Friday. The stock has rallied about 292% over the previous yr. ( Learn the most effective 2026 methods from contained in the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and data right here . )