Safe Pro Group (SPAI) Plunges 8.05% Despite Buy Rating

On July 18, 2025, Safe Pro Group experienced a significant drop of 8.05% in pre-market trading, marking a notable shift in investor sentiment towards the company.

Litchfield Hills Research initiated coverage of Safe Pro Group (SPAI) with a Buy recommendation, highlighting the company's innovative AI-powered drone imagery solutions for defense and security applications. Analyst Theodore R. O’Neill emphasized SPAI’s patented mine detection technology, which has been proven effective in Ukraine, as a modern solution to outdated demining methods. The company's SpotlightAI(TM) platform, capable of detecting threats in under 0.2 seconds, operates via cloud or edge computing and has processed over 1.6 million drone images.

Safe Pro Group's diverse operating units include Safe Pro AI, Airborne Response, and Safe-Pro USA, which cater to various sectors such as defense, infrastructure, and agriculture. The company's strong intellectual property protections and growing demand from global humanitarian and military efforts further support its valuation. Additionally, the recently passed One Big Beautiful Bill Act, which allocates $33 billion in federal funding to AI and drone technologies, is expected to benefit SPAI significantly.

With forecasted revenue of $12.5 million in 2026 and projected breakeven by year-end, SPAI currently trades at a steep discount to peers, supporting the valuation thesis. The $8 price target is based on a discounted earnings model that reflects anticipated revenue traction, supported by robust insider ownership (60%) and a unique technology moat. Given the accelerating demand for autonomous surveillance and threat detection tools, Litchfield Hills views SPAI as both undervalued and well-positioned to capture long-term upside across government and commercial markets.