Why Red Cat Stock Popped Again Today

2 hours ago 1

Wall Street expert Northland raised its terms people connected Red Cat banal today.
Northland calls Red Cat "uniquely positioned arsenic a starring UAS and USV vendor."
10 stocks we similar amended than Red Cat ›

Red Cat Holdings (NASDAQ: RCAT) banal roared past week, aft preannouncing income results for Q4 2025 showing a 1,842% summation to betwixt $24 cardinal and $26.5 million.

Red Cat banal is moving adjacent higher today, clawing retired different 3.7% summation done 10:30 a.m. ET -- and you tin convey Northland Capital for that.

Masked worker holding quadcopter drone successful hand.

Northland raised its terms people connected Red Cat banal to $22 per stock portion reiterating its outperform standing connected the U.S.-based shaper of drones for the military.

Northland called Red Cat's Q4 income impervious of its quality to rapidly standard production, and called Red Cat "uniquely positioned arsenic a starring UAS and USV vendor," arsenic TheFly.com reports.

Northland mightiness beryllium right. Last month, if you recall, the Federal Communications Commission announced it is banning the merchantability of foreign-made drones and drone parts successful the U.S. Some drone models -- not made successful China -- person already been exempted from the ban. Still, arsenic regards the astir fashionable drone models from China, the FCC determination does look apt to payment Red Cat.

That said, I'm not definite adjacent the FCC prohibition is capable to marque Red Cat "uniquely positioned" here. Don't get maine wrong. The company's income gains successful Q4 were impressive. But adjacent annualized, $24 cardinal to $26.5 cardinal successful quarterly income puts Red Cat astatine lone astir $100 cardinal successful yearly revenue.

That's conscionable a tiny fraction of the $1.4 cardinal successful drone gross that AeroVironment (NASDAQ: AVAV), America's biggest pure-play shaper of drones, brings successful in a year. And AeroVironment banal is profitable. Red Cat is not.

Until the institution proves it tin some merchantability drones, and merchantability them profitably, Red Cat banal remains a merchantability for me.

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