Unstoppable: How much higher can the DroneShield share price fly?

Another day flying high for this counter-drone player.

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A silhouette shot of a man holding a control in his hands and watching as a drone hovers overhead with sunrays coming from the sky.

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The DroneShield Ltd (ASX: DRO) share price once again captured investor attention on Wednesday.

Whilst there were no company-specific updates, investors bought shares of the company en masse today. At market close today, shares finished trading at $1.365 apiece, just shy of its recent 52-week high of $1.42.

Let's delve into the factors propelling this counter-drone technology company to new highs.

What's driving the DroneShield share price?

The DroneShield share price has skyrocketed 481% over the past year, driven by increasing demand for its drone detection and disablement technology. Several updates have fuelled the buying spree.

For one, It recently announced a successful share placement, raising $30 million by selling 37.9 million shares at a valuation of 80 cents each.

This followed an oversubscribed share purchase plan in April, where the company had to increase the subscription from $5 million to $15 million due to overwhelming demand. It had $40 million worth of orders hoping to participate in the capital raise.

Secondly, in Q1 CY 2024, DroneShield reported a staggering 900% year-over-year revenue surge to $16.4 million.

Analysts at Bell Potter have subsequently given a buy rating for the DroneShield share price, projecting $97 million in sales and $24.4 million in earnings for the year.

Finally, the company is bullish on its growth prospects, recently outlining a bullish scenario to grow sales to $500 million. The DroneShield share price shot up immediately following this.

CEO Oleg Vornik points to a significant undersupply in the counter-drone market and rising demand from both the public and private sectors as tailwinds for this growth. Both of these appear to be positives for the DroneShield share price.

What's in store for the future?

DroneShield develops technology designed to protect against drone attacks. Its customers include militaries, governments, and critical infrastructure like energy grids. Its "crown jewel" is the suite of software solutions that can detect and disable drones.

DroneShield recently secured a $5.7 million repeat contract with a US Government customer and a groundbreaking framework agreement with NATO. Both are expected to significantly boost sales in the long term. Being that this is a new sector, the excitement is palpable in the DroneShield share price.

DroneShield anticipates continued growth, believing the counter-drone market is still in its early stages.

As global military and security agencies increasingly recognise the importance of countering drone threats, the company might be well-positioned to capitalise on this expanding market, in my estimation.

DroneShield share price keeps flying

With its share price hovering around $1.36 at the close on Wednesday, DroneShield continues to be front and centre for ASX investors.

There may be reason to be optimistic about its strategic partnerships in the burgeoning counter-drone technology sector. As always, remember the risks, and consider your own circumstances.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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