Lower profitability incorporated (Drone Volt)
Lower profitability incorporatedTARGET CHANGE
CHANGE IN TARGET PRICE € 0.01 vs 0.02 -36.0%
Our target price has been reduced due to the peer-based metrics having been impacted by a lower EBITDA forecast for 2024 and the lack of net profits until 2026 vs 2025 previously. Moreover, this lower EBITDA generation has reduced our DCF-derived valuation, further reducing the target price. Finally, we incorporate the new capital increase with an oversubscription thesis resulting in 19% dilution.
CHANGE IN DCF € 0.02 vs 0.03 -23.3%
Due to the lower forecasted EBITDA generation in 2024 than we had previously expected, we have reduced our EBITDA forecasts accordingly for the years ahead, especially after the H1 results which showed a lower gross margin on the distribution side especially (7% vs 10% previously). Our FCF for 2024 onwards are affected as we have not modified our growth assumptions for the out years.
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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