DroneShield share price roars to yet another all-time high in 2024 surge

Investors continue lifting the bid on the counter-drone tech company.

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The DroneShield Ltd (ASX: DRO) share price has surged to another new all-time high in early trade on Thursday. At the time of writing, the stock is around 4% higher, swapping hands at $1.98 apiece.

This marks yet another all-time high since April for the counter-drone technology company, extending its rally to a staggering 440% this year to date.

Just 12 months ago, in July 2023, investors valued the DroneShield share price at around 30 cents per share. The stock has since increased in multiples since then. Let me explain.

Why is the DroneShield share price soaring – again?

Investors continue showing strong interest in the DroneShield share price. This has been driven by a series of positive developments, including the company's financial results.

The most recent catalyst was an announcement on 20 June. DroneShield advised it had secured a $4.7 million order from a "non-government Swiss international customer".

DroneShield will provide multiple vehicle-based counter-drone (C-UxS) systems – it's flagship technology – to this customer.

This will also offer protection for VIP personnel and convoys in what are known as "On-The-Move (OTM)" missions.

According to the US Army Corps, OTM missions are typically used in military operations, where communication is required whilst continuously moving. Given the nature of these missions, highly specialised equipment is needed. DroneShield's technology was chosen in this instance.

CEO Oleg Vornik – who has made some seemingly bullish comments in recent weeks, including the prospect for growth to $500 million in annual revenues – was "excited" about the new customer.

Investors were excited too, driving the DroneShield share price to another record soon afterwards. The trend continues today.

Significant contracts and revenue growth

DroneShield's drone detection and disablement technology has attracted global demand. For instance, in Q1 FY 2024, revenues were up 900% year over year to $16.4 million.

This extraordinary growth was fuelled by several contract wins. This includes a $5.7 million repeat order from a US Government customer and the first counter-small UAS procurement framework agreement from the NATO Support and Procurement Agency (NSPA).

DroneShield has also successfully raised capital in 2024 to support its growth. In April, it completed a share purchase plan, raising $15 million from investors. It was heavily oversubscribed.

It then completed a share placement and raised $30 million by selling around 38 million shares at 80 cents each. Already, these investors have locked in sturdy gains.

What's next for DroneShield?

Analysts are optimistic about what's in store for the DroneShield share price. Bell Potter rates DroneShield shares a buy, forecasting $97 million in sales and $24.4 million in earnings for FY24.

CEO Oleg Vornik is even more bullish, as mentioned. But it looks as if investors are the most optimistic. The 4-week average trading volume in DroneShield is over 12.03 million shares, equal to around 1.5% of its entire share float.

Additionally, recent price gains of other aerospace and defence stocks such as AML3D Ltd (ASX: AL3) suggests that investors are paying close attention to the broader space.

DroneShield continues to be a standout performer on the ASX. Investors are buoyed by the company's strategic contract wins. The stock has climbed more than 730% into the green over the past 12 months.

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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