Ondas Inc. (NASDAQ:ONDS) stock is trading higher by more than 3% on Monday after the company secured a $5.6 million order for Electronic Safe & Arm Devices, or ESADs, supporting a European loitering munition program.
Ondas Lands New Defense Order
The contract marks Ondas’ first such order since acquiring GATE Technologies and Bron Technologies. Production will be supported by the company’s operations in Poland.
GATE develops ESADs and electronic fuzing technologies for loitering munitions, unmanned aerial vehicles, missiles and rockets. Bron provides European manufacturing, certification and market access through its Polish operations.
The order expands Ondas’ Precision Strike business and increases its exposure to the growing precision weapons market.
Ondas said the contract reflects demand for mission-critical safe-and-arm and electronic fuzing systems. European and allied defense customers are prioritizing scalable production, resilient supply chains and proven technologies.
The company is also pursuing additional opportunities across NATO and allied defense markets.
Earnings And Analyst Outlook
Ondas’ next major catalyst could come with its estimated Nov. 12, 2026, earnings report.
Analysts expect a loss of 6 cents per share, compared with a loss of 3 cents a year earlier. Revenue is projected at $150.59 million, up sharply from $10.10 million in the prior-year period.
Ondas carries a Buy consensus rating and an average price forecast of $17.35 across eight analysts. Forecasts range from $13 to $22.75.
Citizens initiated coverage Monday with a Market Outperform rating and a $14 price forecast. Needham maintained a Buy rating and $19 forecast on Sept. 14, while Ladenburg Thalmann raised its forecast to $22.75 on Aug. 17.
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Citizens Initiates Coverage With Market Outperform Rating
Citizens initiated coverage of Ondas with a Market Outperform rating and a $14 price forecast. Analyst Trevor Walsh sees the company building a scaled autonomous defense platform across aerial security, precision strike, intelligence and surveillance, and autonomous ground systems.
The analyst pointed to Ondas’ rapid acquisition strategy, international footprint and “One Ondas” operating model as key strengths. Citizens estimates an international addressable market of about $118 billion across the company’s four core segments.
Citizens also sees an opportunity for greater operating leverage as Ondas integrates its acquired businesses. However, the firm flagged risks from the pace of acquisitions, shareholder dilution, limited visibility into organic growth and geopolitical exposure.
ONDS ETF Exposure
The Defiance Drone and Modern Warfare ETF (NYSE:JEDI) has a 6.43% weighting in ONDS, while the REX Drone ETF (NASDAQ:DRNZ) carries an 11.77% weighting.
The relatively large positions mean sizable inflows or outflows from the ETFs could result in corresponding purchases or sales of Ondas shares.
ONDS Stock Price Action
Ondas shares were up 3.38% at $7.63 at the time of publication Monday, according to Benzinga Pro data.
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