Drone Volt announced that the number of prospects reached around 100 at Eurosatory, a major European Defense exhibition, which is “significantly more” than at previous similar events. 90% of them come from international customers, probably mostly European, which is good news for the geographical expansion of the company and might suggest that the European-built Drone Volt Kobra is finding its market.
On top of this, Marc Courcelle met the current Armies Minister, Sébastien Lecornu, and Drone Volt is a signatory of the Drone Pact, which streamlines relationships between the drone industry and the State. These two elements are major step-ups, as the company was struggling to build relations with buyers within the state despite good relations with potential end-users (such as policemen). Although Sébastien Lecornu will probably not remain Minister after the general elections next week, the program released by the far-right RN indicates support for the growth trajectory in Defense spending. Therefore, we do not think there will be a change in the recognition of the importance of drones in the next government.
These elements bode well for future revenue growth and we reiterate our Buy recommendation on the stock.
