TLDR
- Ondas Holdings (ONDS) shares rallied 23.58% over the past week following an analyst upgrade and strong quarterly performance.
- Oppenheimer raised its rating to “outperform” with a $12 price target, implying 67% upside from Friday’s close.
- Third quarter revenue hit $10.1 million, marking a 582% increase from the prior year period.
- The company lifted its 2025 revenue forecast to $36 million from $25 million.
- Gross margin reached 26% in Q3, with analysts projecting potential expansion to 70% in coming years.
Ondas Holdings shares posted a 23.58% gain over the past week. The move came after Oppenheimer elevated its rating on the defense technology company.
Ondas Holdings Inc., ONDS
The firm upgraded Ondas from “perform” to “outperform.” Analyst Tim Horan set a $12 price target on the stock.
The target suggests 67% upside potential from Friday’s $7.18 closing price. The upgrade followed impressive third quarter results released earlier this month.
Revenue for the July through September period reached $10.1 million. That marks a 582% jump from $1.48 million in last year’s third quarter.
Strong sales of Iron Drone and Optimus systems drove the revenue growth. These products serve military and public safety customers under existing contracts.
The Apeiro Motion acquisition also boosted results. That deal closed during the second quarter of this year.
Financial Performance Metrics
Net loss attributable to shareholders decreased 17.7% to $8.78 million. The prior year period showed a loss of $10.67 million.
Adjusted EBITDA loss expanded 23% to $8.76 million from $7.1 million. The company achieved a gross margin of 26% during the quarter.
Management increased its full-year revenue projection to $36 million. The previous guidance stood at $25 million.
The revision reflects strong performance from the core OAS business. Recent acquisitions made since early Q2 2025 also factor into the higher outlook.
Growth Prospects and Market Opportunity
Oppenheimer sees potential for gross margins to expand to 70% over the next several years. The company maintains $840 million in pro forma cash.
Ondas Autonomous Systems backlog reached an all-time high of $22.2 million. The analyst praised the company’s open platform technology approach.
The platform features a comprehensive ecosystem of technologies and partners. Ondas delivers combined air and ground protection solutions.
The Counter-UAS market is projected to grow from $2.4 billion in 2024 to $10.5 billion by 2027. Shares traded at $6.56 on Thursday before jumping 18% Friday after the upgrade.
The stock closed Friday’s session at $7.18 per share. Trading volume increased as investors responded to the analyst call.
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Source: https://blockonomi.com/ondas-onds-stock-why-analysts-see-67-upside-ahead/