Eurosatory takeways
LATEST
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.