Red Cat Gets Buy Rating with $20 PT, Lands 173-System Japan Drone Deal
RCAT•H.C. Wainwright initiated coverage of Red Cat with a Buy rating and $20 price target, implying over 100% upside, while forecasting $150–180 million annual revenue. The company won a 173-system Black Widow drone contract from Japan’s Ministry of Defense and saw retail chatter surge 271%.
1. Analyst Initiation and Price Target
H.C. Wainwright initiated coverage of Red Cat Holdings with a Buy rating and set a $20 price target, implying over 100% upside from the May 26 closing price.
2. Revenue Guidance
The firm projects Red Cat will generate annual revenue of $150 million to $180 million in the short- to medium-term based on its expanding defense sales pipeline.
3. Major Drone Contracts
Red Cat secured a 173-system order for its Black Widow drone package from Japan’s Ministry of Defense, funded under Japan’s Fiscal Year 2026 program, with each system including two aircraft and a ground control station.
4. Retail Sentiment Surge
Retail investor chatter for Red Cat surged 271% in the past 24 hours, coinciding with a four-session stock price rally of over 4%.
