Ondas (ONDS) is well-positioned to dominate the "lower skies" drone defense, security and observation market and maintains a meaningful first-mover advantage as the market matures, Oppenheimer said in a Tuesday note.
The brokerage said Ondas is an underappreciated play on artificial intelligence and a potential leader in Physical AI with a coordinated, multi-domain platform spanning aerial drones and ground or maritime robotics.
Ondas is "hitting a virtuous flywheel of expanded marketing/distribution, enhanced technological capabilities, new customer wins, and partners," according to the note.
Oppenheimer raised its 2026 revenue estimate for Ondas to $189.6 million from $134.5 million, above the company's updated $170 million to $180 million guidance, to factor in upside from future mergers and acquisitions.
The firm reiterated an outperform rating on the stock and increased its price target to $16 from $12.
Shares of Ondas were uo 14% in recent trading.
Price: 13.84, Change: +1.70, Percent Change: +14.03
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