Roth Capital analyst Craig Irwin initiated coverage of Red Cat with a Buy rating and $25 price target. The company is well positioned for "breakout growth from an expanding drone portfolio and intense demand," the analyst tells investors in a research note. The firm says Red Cat's production footprint is designed for $1B in revenue versus the 2026 guide of $150M-$180M. The company's growth in 2026 should drive gross margin expansion toward management's 30% targets, contends Roth.
