It is fair to say that Electro Optic Systems Holdings Ltd (ASX: EOS) shares have been incredible performers this year.
Since the start of 2025, the ASX tech stock has risen a massive 585%.
But if you thought the gains were over, you will be pleasantly surprised to learn that Bell Potter believes there are more gains ahead.
What is the broker saying about this ASX tech stock?
Bell Potter notes that EOS has announced another major contract win worth over $100 million for its remote weapon systems. It said:
EOS has announced it has secured a contract for the delivery of R400 Remote Weapon Systems (RWS) for the Australian Defence Force's LAND 400 initiative. The contract is valued at a total of $108m and is expected to be primarily fulfilled during CY25-27e. Under the contract, EOS will deliver an enhanced R400 RWS to be fitted on Hanwha Defence Australia's (prime contractor for the LAND 400 program) Redback Infantry Fighting Vehicle's.
The broker feels that this could be the start of a positive period for the company filled with further contract announcements. It adds:
We see a catalyst rich next 6 months for EOS with key events including: further details from the EU's defence technical roadmap scheduled to be released ahead of the EU summit on October 23-24; possible award of a $50m Slinger contract and $20m RWS contract in 4Q25/1Q26; and advancement of potential directed energy opportunities and the $500m R500 Middle East opportunity along the market development pipeline.
Buy recommendation
In response to the news, the broker has retained its buy rating on the ASX tech stock with an improved price target of $11.20 (from $11.00).
Based on its current share price of $8.97, this implies potential upside of almost 25% for investors over the next 12 months.
Commenting on its buy recommendation, it said:
We retain our Buy rating and upgrade our TP by 1% to $11.20. EOS is positioned as a market leader in counter-UAS solutions, in particular directed energy, and is fully leveraged to increases in defence budgets globally magnified by higher spending allocations to counter-drone technology. The EU "drone wall" is one such example underscoring the critical need for counter-UAS. We see positive news flow over the next 6 months stemming from counter-UAS and RWS contract awards. We see material upside to our CY27e and beyond forecasts if at least 1 HELW contract is awarded in CY26e.
