Needham initiates coverage of Ondas with a Buy rating and $5 price target, adds to Conviction List.

Needham initiates coverage of Ondas (ONDS) with a Buy rating and $5 price target, adding the stock to the Needham Conviction List. The analyst sees the unmanned aerial systems industry entering a multi-year supercycle and views Ondas as one of the best-positioned U.S. based pure-play drone companies. Ondas' end-to-end portfolio targets high-growth verticals, creating a near-term $5B-plus opportunity. The analyst expects Ondas to deliver "industry-leading growth."

Needham & Company, a prominent research firm, has initiated coverage on Ondas Holdings Inc. (NASDAQ: ONDS) with a Buy rating and a price target of $5.00. The stock has surged over 180% in the past six months, with a current ratio of 2.9x, indicating strong liquidity [1].

The analyst firm added Ondas to the Needham Conviction List, signaling strong confidence in the unmanned aerial systems (UAS) company's growth potential. Needham believes the UAS industry is entering a multi-year supercycle, positioning Ondas as one of the best-situated U.S.-based pure-play drone companies to capture increasing demand for autonomous offensive and defensive platforms [1].

Ondas' end-to-end portfolio targets high-growth sectors including defense, homeland security, drones-as-a-first-responder (DFR), and critical infrastructure markets, which are being unlocked by favorable U.S. legislation and global investment in UAS and counter-UAS technologies. The firm highlighted a near-term $5 billion-plus market opportunity for Ondas, along with a $1 billion-plus U.S. rail networking opportunity [1].

In other recent news, Ondas reported a significant 555% revenue growth in the second quarter, surpassing Northland’s estimates and prompting the research firm to raise its stock price target to $5. Additionally, Ondas announced a definitive agreement to acquire Israeli robotics firm Apeiro Motion for $12 million, a move expected to enhance its capabilities in ground robotics and fiber optic communications. The acquisition is anticipated to close in the third quarter of 2025 [2].

Needham's analyst Austin Bohlig projects revenue to jump 234% in 2025 and nearly triple again in 2026, backed by defense orders, new federal policies, and expanding global demand. He highlighted the stock’s inclusion on the Needham Conviction List, citing a transformational opportunity in unmanned aerial systems (UAS) [3].

References:
[1] https://www.investing.com/news/analyst-ratings/needham-initiates-coverage-on-ondas-stock-with-buy-rating-and-5-price-target-93CH-4199970
[2] https://www.benzinga.com/analyst-stock-ratings/initiation/25/08/47215390/is-ondas-holdings-the-top-us-drone-stock-to-own
[3] https://site.financialmodelingprep.com/market-news/ondas-holdings-inc-nasdaq-onds-buy-rating-needham