Evercore ISI initiated coverage of Red Cat Holdings (NASDAQ:RCAT) with an Outperform rating. The investment bank established a $15.00 price target for the military drone manufacturer.
Red Cat shares traded higher following the report, outperforming a generally negative market trend. Analyst Amit Daryanani highlighted the company’s strategic position within the defense electronics and unmanned aerial vehicle sectors.
The firm expects Red Cat to capture a larger share of rising U.S. Department of Defense and NATO spending. The company is specifically expanding its role in the short-range reconnaissance military drone market.