Eurosatory takeways
Eurosatory takewaysLATEST
ANALYSIS
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.
IMPACT
These elements bode well for future revenue growth and we reiterate our Buy recommendation on the stock.
Drone Volt SA. Drone Volt SA is a France-based company principally engaged in the aerospace industry. The Company provides civilian drone manufacturing. It specializes in the production, integration and sale of drones for professionals. Drone Volt is a provider of the audiovisual market in the field of aerial photography by drone. The Company is also present in many other markets such as security and topography, among others. The Company's main product is the Pack PRO FOR GH4 S900. It cooperates with Ministry of Internal Affaires, Ministry of Defense, CERN, Gendarmerie Transports Aeriens (aerial transport police), Dakar 2015, Spie, TF1, Bouygues, CNRS, Bonne Pioche, RAID and GEDEON Programmes, among others. It operates through Dandrone.
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