Droneshield Ltd (ASX: DRO) shares have attracted a lot of attention from investors and analysts this week.
At the time of writing on Thursday morning, the Droneshield share price is 1.25% higher and changing hands at $3.24 a piece.
So far in September, Droneshield's share price has been largely flat; however, over the past month, it has dropped 15.84%.
Despite the recent sell-off, the share price is still an enormous 170% higher than this time last year.
For context, the S&P/ASX 200 Index (ASX: XJO) is trading 0.75% lower at the time of writing this morning. Over the past month, the index has fallen 2.3% but over the year, it is 7.49% higher.
Here's why the technology share has drummed up so much interest recently.
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Here's a quick recap of what happened this week
Over the past couple of weeks, the counterdrone technology company has demonstrated clear tailwinds and hit some significant milestones that tend to attract investor attention.
Droneshield designs and manufactures AI electronic technology to detect, track, and neutralise drones. It provides these solutions to military, government, and critical infrastructure clients worldwide.
Yesterday, Droneshield announced some big contract wins. In a note to the ASX, the company said it has sold more than 4,000 systems worldwide, following the receipt of two contracts with the US Department of Defence. Combined, the contracts are worth $7.9 million. The new order is expected to be fulfilled within 30 days.
The news follows a company announcement last week that Droneshield will join the ASX 200 Index effective prior to market open on Monday, 22 September.
The move demonstrates the company's growing market capitalisation. The move could boost volume on the buy side because it means index funds that track the ASX 200 will need to buy Droneshield shares. Also, some fund managers have mandates that only allow them to buy shares from certain indices.
Also, because Droneshield's shares have pulled back in recent weeks, it's possible some investors could have renewed focus on the stock because they think a buying opportunity has opened up.
What do analysts think about Droneshield shares?
Bell Potter is very positive on Droneshield and sees plenty of value in its shares at current levels. The broker has a buy rating on its shares and a $3.70 target price.
TradingView data shows analyst consensus of a strong buy rating on the stock, also with a target price of $3.70.
At the time of writing, the $3.70 target price represents a 14.2% upside for investors over the next 12 months.
