Analysts at Piper Sandler initiated coverage of drone-maker Unusual Machines (UMAC) with a bullish “Overweight” rating and a $38 price target (indicating a 39.5% upside from current levels). This comes at a time when the U.S. Federal Communications Commission (FCC) is banning the use of Chinese-made drones and components. For instance, a possible crackdown on foreign-made drones with LiDAR obstacle-avoidance features.
Simultaneously, the U.S. government is placing a heavy focus on domestic manufacturing of these drones. In light of this, Unusual Machines landed a $2.1 million purchase order for domestically assembled drone systems for defense use this year. However, Piper Sandler believes the largest tailwind may come from the commercial market.
