BUZZ — Jefferies cuts DroneShield PT, says FY26 underlying sales growth appears flat
* Jefferies says DroneShield's weekly revenue metric is inflated by previously committed revenue * Estimates "true" weekly revenue at about A$3.4 million ($2.35 million) in FY26 versus A$3.5 million in FY25, compared with the company's reported implied growth to between A$4.8 million - A$5.2 million per week * "Underlying sales momentum appears broadly stalled once prior-period contract wins are excluded" — Jefferies * Brokerage says revenue could exceed the top end of FY26 guidance given revenue stood at A$261 million as of Oct. 12, but expressed concern that revenue growth is lagging expense growth * Notes 1H26 operating expenses were A$103 million versus A$42 million a year earlier * Adds FY26 may be a story of no underlying organic sales acceleration, raising concerns over medium-term growth * Rates stock as "underperform" and trims price target to A$1.25 from A$1.45 per share * DRO down over 50% YTD, as of last close ($1 = 1.4457 Australian dollars) (Reporting by Rajasik Mukherjee in Bengaluru) ((Rajasik.Mukherjee@thomsonreuters.com)
* Jefferies says DroneShield's weekly revenue metric is inflated by previously committed revenue * Estimates "true" weekly revenue at about A$3.4 million ($2.35 million) in FY26 versus A$3.5 million in FY25, compared with the company's reported implied growth to between A$4.8 million - A$5.2 million per week * "Underlying sales momentum appears broadly stalled once prior-period contract wins are excluded" — Jefferies * Brokerage says revenue could exceed the top end of FY26 guidance given revenue stood at A$261 million as of Oct.
12, but expressed concern that revenue growth is lagging expense growth * Notes 1H26 operating expenses were A$103 million versus A$42 million a year earlier * Adds FY26 may be a story of no underlying organic sales acceleration, raising concerns over medium-term growth * Rates stock as "underperform" and trims price target to A$1.25 from A$1.45 per share * DRO down over 50% YTD, as of last close ($1 = 1.4457 Australian dollars) (Reporting by Rajasik Mukherjee in Bengaluru) ((Rajasik.Mukherjee@thomsonreuters.com)