NEW YORK, April 03, 2023 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Draganfly Inc. The in-depth 22-page initiation report includes detailed information on the Draganfly’s business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Diversified and Strategic Product Positioning - Draganfly Inc. holds a growing diversified portfolio of multiple drone products and services developed on the back of continuous innovation. The company provides end to end solutions ranging from drone hardware, software, drone services, drone engineering, and AI & data solutions, among others. Protected by a strong set of 23 issued patents, the company’s product pipeline targets the burgeoning segment of the commercial drone market. The company’s drone products are highly capable to meet the growing needs of commercial space, including but not limited to agriculture, commercial delivery, and public safety. The company has positioned itself strategically within the fragmented and highly competitive market, focusing on high-end customers, ranging from commercial to military, by providing highly advanced and sophisticated products equipped with features like autonomy, artificial intelligence, and advanced sensors. With a strong product portfolio and a track record of continuous innovation, the company is seeking to position itself for accelerated growth in the rapidly expanding drone industry.
- Draganfly's Drones Making a Difference in Ukraine and Beyond, While Advancing Its Business - Draganfly has been in the news lately for its growing presence in Ukraine, where it has been supporting humanitarian efforts and de-mining activities. Draganfly has supplied over 40 drones, including 30 reconnaissance drones equipped with automated flight capabilities and imaging solutions for real-time observations and downloadable maps. These lightweight and versatile drones have been especially useful to first responders in hazardous and hard-to-reach areas, providing improved situational awareness and increasing overall efficiency for ground resources. Recently, the company announced that it has delivered the first of three Situational Assessment Drones to the DSNS Emergency Services Department in Kyiv, with plans to deliver two more to other regions in Ukraine. These automated VTOL drones use RGB & multi-spectral imaging solutions to provide instant maps for future use, improve situational awareness, assist in inaccessible areas, and increase efficiency for ground resources. In addition, Draganfly has also signed contracts and partnerships with companies such as Lufthansa Industry Solutions, Coldchain Technology Services (CTS), and Digital Dream Labs (DDL) to develop and supply its drone solutions, including hardware, software, and services, for use in their respective businesses. As Draganfly continues to expand its presence in Ukraine, the company's UAS capabilities are gaining global visibility, opening numerous potential opportunities for revenue generation in the years ahead.
- Industry, Competition and Regulatory Tailwinds - The global drone industry is currently characterized by rapidly growing commercial segment, including software and services. This is further accompanied by increasing demand for domestic or non-chinese providers and transparency in regulatory frameworks. Even though the commercial drone market is dominated by Chinese players, with DJI holding 54% market share as of 2021, this has significantly come down from 70% in the previous years. With DJI’s entry into U.S. entity list and growing concerns regarding privacy and cybersecurity issues Chinese players are likely to potentially lose their stronghold in the global drone market. This, in addition to clarity surrounding use of drones beyond visual line of sight as per FAA’s 2022 guidance, will likely benefit domestic players, including Draganfly, with significant market share gains.
- Valuation - We have valued Draganfly Inc. using a discounted cash flow (DCF) and comparable company analysis, assuming 80% weightage for DCF and 20% for comparable company analysis. Furthermore, we used a 15.00% discount rate and a 2.50% terminal growth rate for our DCF, and a 4.0x 2024 EV/Revenue multiple for the comparable company analysis, in line with selected comparable businesses. The combined approaches resulted in a valuation of C$161.07 million or C$3.75 per share, contingent on successful execution by the company.
About Draganfly Inc.
Draganfly is a Canadian company that manufactures and sells commercial unmanned aerial vehicles and software for various markets, including public safety, agriculture, and mapping. The company was established in 1998 and is headquartered in Saskatoon, Canada. For more information, visit https://draganfly.com/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Draganfly Inc. for producing research materials regarding Draganfly Inc., and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 04/03/2023, the issuer had paid us $35,000 for our services, which commenced 01/31/2023 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 04/03/2023. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Draganfly Inc.
Contact:
Diamond Equity Research
research@diamondequityresearch.com
