A U.S. push into the drones industry will drive big gains for this components maker, says Roth
Unusual Machines will continue to surge as the U.S. deepens its domestic drone push, according to Roth Capital Partners. The investment firm initiated coverage of the drone components maker with a buy rating. It set a $25 price target on shares, implying 77% upside from Tuesday’s close. “The U.S. drone components market benefits from strong regulatory support forcing the establishment of a domestic supply chain,” analyst Craig Irwin said in a note. “As a diversified supplier and low-cost producer, UMAC is well positioned.” U.S. President Donald Trump signed last year an executive order to accelerate domestic drone production and integrate the aerial vehicles into the National Airspace Program. The U.S. is also considering raising its defense budget to $1.5 trillion in fiscal 2027, potentially freeing up more funds for the federal government to strike more deals with drone manufacturers. As part of its domestic drone push, the U.S. is also restricting DJI drones, a type of unmanned aerial vehicle manufactured by Chinese company SZ DJI Technology, from entering the American market. The policy is likely to benefit stocks like Unusual Machines, according to Roth. “Regulatory exclusion of China-made drone parts uncovers a multi-billion-dollar market,” Irwin wrote. “The first demand phase will come from drones for the [Department of Defense], then delivery drones, and consumer drones as DJI is specifically excluded from the U.S.” Roth’s call falls in line with consensus on the Street. All four of the analysts covering Unusual Machines have a buy rating on the stock, LSEG data shows. Shares have jumped 11% since the beginning of this year.
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