DroneShield appoints US advisory board

The counter-drone company has strengthened its US operations as it seeks to grow strongly in the massive market.

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Key points

  • DroneShield has appointed a high-powered US advisory board.
  • The company aims to leverage this to grow strongly in the major US market.
  • The shares have been under pressure recently despite good news flow.

DroneShield Ltd (ASX: DRO) has appointed a US advisory board including senior military and national security leaders.

The company said on Friday that the board would help it expand its US operations, "providing strategic guidance on growth, policy engagement, and technology adoption within military, intelligence, and critical infrastructure sectors''.

The members of the advisory board include retired US Air Force General Mark D. Kelly, retired US Air Force Brigadier General Gwyn Armfield, business transformation specialist and former US Navy officer Jay Humphlett, and retired US Air Force senior executive Anthony P. Reardon.

DroneShield Chief Executive Oleg Vornik said the advisory board would be invaluable as the company seeks to grow strongly in the US market.

The formation of our U.S. Advisory Board marks another milestone in DroneShield's growth trajectory. Each member brings unique insight from decades of leadership across military operations, military technology, and national security. Their collective experience will strengthen DroneShield's ability to support U.S. and allied partners in addressing the evolving drone threat environment.

Shares under pressure

DroneShield shares have been sold off heavily over the past month, dropping from historical highs of $6.70 in early October to $3.40 at Thursday's close, valuing the company at $3.08 billion.

This is despite the company recently announcing a $25.3 million contract win in Latin America and also announcing that it had passed a key milestone of $200 million in cash receipts in a 12-month period.

This milestone triggered the vesting of more than 40 million share options for staff.

Despite the recent sell-off, brokers are still keen on the stock, with Bell Potter recently publishing a research note with a price target of $5.30 on the shares.

The broker said there were compelling reasons to own the stock:

DroneShield is an Australian defence manufacturer specialising in counter drone technology. DRO provides an end-to-end counter-drone solution that integrates proprietary artificial intelligence software with a suite of hardware products utilised to detect, identify and defeat aerial, ground and maritime threats. The company's products are largely in-house technology and include handheld, vehicular and fixed installations. DRO's customers primarily include military and intelligence, as well as law enforcement, critical infrastructure and commercial parties globally.

In other defence news on Friday, small-cap company Etherstack Plc (ASX: ESK) said it had been awarded a $2.5 million contract with the Australian government, bringing its total contract value from the government to $15 million since 2021.

The company said it would also give further market guidance next week.

Motley Fool contributor Cameron England 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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