How much could $10,000 invested in Droneshield shares be worth next year?

Do analysts think it is a good idea to buy this stock?

| More on:
Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

DroneShield Ltd (ASX: DRO) shares have been a popular option for investors in the past year or two.

During this time, the counter drone technology company's shares have generated big returns for investors.

And if you timed it perfectly, the returns would have been out of this world.

For example, two years ago you could have picked up Droneshield shares for 31 cents each.

If you had been lucky enough to then sell them at their peak of $2.72 in July last year, you would have got a return of almost 9x.

But that's the past and unless you have a time machine, those returns are gone now.

So, let's focus on the future and see what a $10,000 investment could become in one year.

$10,000 invested in Droneshield shares

At the time of writing, the Droneshield share price is trading at 84 cents.

This means that with a $10,000 investment you could pick up 11,905 Droneshield shares. What could they be worth in March 2026?

Well, the team at Bell Potter is very positive on the company and sees a lot of value in its shares at current levels.

So much so, the broker recently put a buy rating and $1.10 price target on them. If its shares were to rise to that level, your 11,905 units would have a market value of $13,094.40.

That's over $3,000 more than you started with or a return of just over 30%. Not bad!

Why is Bell Potter bullish?

Bell Potter has been impressed with the strong start to FY 2025 that Droneshield has reported. It said:

Whilst DroneShield's performance over the last 12-months did not meet expectations, the near-term outlook is considerably more positive. The value of contracts received YTD (~$47.8m) is evidence of increased levels of customer activity and DRO is well placed to meet this demand having materially increased the scale of its operations and heavily invested in its inventory levels. We retain our BUY recommendation.

Increasing hostilities globally are broadly driving a significant increase in defence budgets with aggregate military expenditure exceeding $2.4 trillion USD in 2023. Asymmetric warfare, including drones and counter-drone defence, is one of the fastest growing subsets within this growing military market – the core competency of DRO.

All in all, this could make Droneshield shares worth considering if you're looking for small cap ideas.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A young man goes over his finances and investment portfolio at home.
Technology Shares

Why are WiseTech shares sinking 6% today?

What's going on? Let's find out what is happening with this tech stock today.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
AI Stocks

NextDC share price lifts off on record quarterly contract wins

AI-fuelled data centre demand is lifting investor interest in the ASX 200 tech stock today.

Read more »

group of traders cheering at stock market
Technology Shares

What drove a 10% surge in ASX 200 tech shares last week?

The ASX 200 roared to a 2-month high on Friday, with tech shares leading the 11 market sectors last week.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Technology Shares

Why is the Block share price crashing 33%?

This payment giant's shares are being hammered today. But why?

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Technology Shares

These ASX 200 tech stocks could rise 20% to 35%

Goldman Sachs is tipping these shares to rise strongly from current levels.

Read more »

A corporate team or board stands together and looks out the window.
Technology Shares

WiseTech shares charge higher on $3.5b acquisition news

This tech stock is ending the week positively. But why?

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

3 reasons to buy this $25 billion ASX 200 tech stock today

A top expert forecasts more outperformance from this fast-growing ASX 200 tech stock.

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Technology Shares

Why is the Brainchip share price crashing 9% today?

The semiconductor company is being sold off on Tuesday. But why?

Read more »