Shares of Red Cat Holdings are trading higher after investment firm H.C. Wainwright initiated coverage on the stock with a 'Buy' rating and a price target that suggests significant upside.
- H.C. Wainwright set a $20 price target, implying over 100% potential upside from the previous day's closing price of $9.77.
- The analyst expects the provider of drone and robotic solutions to convert orders from NATO and Asia-Pacific allies into a 'recurring contract flow'.
- The new coverage and bullish price target are the primary drivers of today's stock rally, rather than the weeks-old news of its recent stock offering and Quaze acquisition.