It's been a difficult Friday for Australian investors, but Electro Optic Systems Holdings Ltd (ASX: EOS) shareholders have plenty to smile about.
While the S&P/ASX 200 Index (ASX: XJO) is down 0.54% to 8,655 points, EOS shares are heading in the opposite direction.
The defence tech company's shares have jumped 7.21% to $11.45, putting it within striking distance of its 52-week high of $12.58.
And with another opportunity opening up in the US defence market, there's plenty for investors to get excited about.
So, could $15 be the next stop?
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EOS unlocks a new US defence opportunity
According to the latest company update, EOS has secured a new procurement pathway for its R400 remote weapon system (RWS).
The system is now listed on the US Joint Interagency Task Force 401 Counter-UAS marketplace.
It allows eligible US government customers to compare counter-drone tech and purchase it through an established US Army contracting arrangement.
Access is also expanding to other allied nations, with 23 countries currently cleared to participate.
The R400 is designed to track and engage ground threats, along with small and medium-sized drones.
While the listing doesn't represent a new contract, it puts EOS in front of more potential customers and makes the buying process easier.
That's a pretty good position to be in, particularly as demand for counter-drone tech continues to grow.
I think this could become a valuable sales channel, especially if EOS can turn that additional exposure into more signed contracts.
The numbers are backing it up
It's not just the growing sales opportunities that have me feeling bullish about EOS.
The company's latest half-year results showed revenue surged 283% to $168.8 million, compared with $44.1 million a year earlier.
Underlying EBITDA also swung from a $14.9 million loss to a $21.6 million profit.
But what really catches my attention is the company's order book, which reached a record $846 million at the end of June.
That's a substantial amount of business already secured, giving EOS plenty of work to deliver over the coming years.
Management is now forecasting full-year revenue of between $360 million and $400 million, including its recently acquired MARSS business.
If achieved, that would represent record annual revenue for the company.
Could EOS shares reach $15?
I think there's a strong case for further upside, particularly if EOS can turn its growing pipeline into more signed contracts.
And I'm not the only one looking at $15.
According to TipRanks, Canaccord Genuity has a buy rating and $15 price target, while Bell Potter and Ord Minnett have targets of $12.60 and $12.50, respectively.
From $11.45, Canaccord's $15 target points to potential upside of more than 30%.
Personally, I'd still be comfortable buying EOS shares at these levels with a long-term investment horizon.
