All eyes on Aquiline Drones (Drone Volt)
All eyes on Aquiline Drones
CHANGE IN TARGET PRICE
0.08 vs 0.10 -15.9%
Despite the better than expected profitability linked to strong cost containment and several one-offs, our DCF has not changed. Our profitability outlook is brighter, as we now expect break-even in the net results by the end of FY24. However, the poor working capital in FY21 due to the rising inventory of finished products has offset the increase in the DCF valuation from our upgraded margins.
There could be some potential upside coming from the success of Aquiline Drones IPO (expected this year), as it would provide the US firm with enough cash to execute the existing contracts with Drone Volt, which consist of 400 H2, 200 H10 and 500 H20 for a total potential value of over 10m. In addition, the Linedrone is expected to hit the market this year and, depending on its commercial success, there could be some upside. Our current estimates include the sales of 3 Linedrones.
CHANGE IN EPS
2022 : …