Our mid-June initiation, "How To Profit From the Asymmetric Warfare Boom," identified the leading public and private companies positioned across the drone and counter-drone space.
Our first single-name coverage focused on Unusual Machines on July 23 (read here). The stock has since surged nearly 77% (read here), signaling that Wall Street is beginning to reprice these defense names as the Ukraine-Russia conflict and the Gulf-area conflict have forever changed how warfare is conducted on the modern battlefield.
As our asymmetric-warfare boom theme continues to evolve, our attention now shifts to another AI-enabled defense and drone company that has spent the year on a merger-and-acquisition spree to expand its drone offerings ahead of a massive procurement supercycle for these technologies from the Department of War.
The bull thesis surrounding Ondas, according to Roth analyst Scott Searle, is that the company's acquisition spree is transforming it into a potential next-generation defense prime and that it will soon become a major supplier of autonomous battlefield systems.
Searle initiated coverage of Ondas last week with a "Buy" rating and a $13 price target, implying roughly 40% upside from its Aug. 10 closing price of $9.31.
Searle said Ondas is evolving from a niche drone vendor into what he calls a multi-domain autonomy platform spanning counter-drone systems, intelligence and surveillance aircraft, precision-strike weapons, ground robots, and electronic warfare, encompassing the same low-cost drones, counter-drone systems, and ground robots present across multiple theaters in Eurasia.
At the center of Ondas' strategy is SkyWeaver, an AI platform developed with Palantir Technologies. SkyWeaver connects Ondas' drones, ground vehicles, sensors, and stratospheric surveillance platforms into a single command-and-control network.
All of this puts Ondas directly in the path of a massive procurement supercycle spurred by the Department of War. Searle estimates that the global market for autonomous and AI-driven defense systems exceeds $100 billion, with Ondas positioning itself to address more than $45 billion of that opportunity.
"Ondas has emerged as a viable and diversified next-gen provider for multi-domain autonomous Defense Tech solutions. Fueled by a wave of 14 acquisitions, ONDS has transformed from a point product drone vendor to a global, diversified supplier of agentic AI-enabled air, land, and cyber solutions. When combined with rapidly advancing battlefield requirements, evolving technology trends and expanding military and defense budgets, Ondas is well positioned for the $100B+ emerging TAM," Searle told clients.
Ondas has announced 14 acquisitions since October 2025, deploying roughly $2.1 billion after raising about $1.9 billion from investors. The largest of those M&A targets was the $875.8 million purchase of DZYNE Technologies, which added long-endurance aircraft, autonomous strike platforms, drone swarms, and counter-UAS systems. The transaction expanded Ondas' portfolio across all five Pentagon drone classifications, including the largest high-altitude platforms.
Other M&A events:
- Omnisys, an Israeli developer of AI-based battlefield resource optimization software, for $196.6 million.
- Mistral, a US defense contractor with access to Army and Special Operations procurement vehicles, for $175 million.
- World View, a developer of stratospheric surveillance platforms, for $150 million.
- Cyberhawk, a drone-based critical-infrastructure inspection company, for $125 million.
- SentryCS, an Israeli counter-drone cyber specialist, for $224.6 million.
- Roboteam, 4M Defense, and INDO Earth, which collectively expanded Ondas into ground robotics, military engineering, and autonomous demining.
The result is a portfolio stretching "from the ballpark to the battlefield," including systems capable of protecting military bases, borders, airports, stadiums, and critical infrastructure.
Ondas entered 2026 expecting annual revenue of between $170 million and $180 million. Following its latest acquisitions, the company now expects more than $525 million in revenue, with an annualized exit rate approaching $1 billion.
Searle forecasts revenue of $520.5 million in 2026, $1 billion in 2027, and $1.23 billion in 2028. The company has reported a backlog of $457 million, $1.6 billion in program wins, and a two-year opportunity pipeline valued at $4.3 billion.
Ondas shares have remained range-bound between roughly $6 and $14 over the past year. A sustained breakout above the upper end of that range would indicate that overhead supply has been absorbed and could clear the way for renewed momentum. Conversely, if the company's recent acquisitions fail to generate the expected revenue and integration benefits, the trading range could turn out to be a bust...
Bloomberg data shows nine analyst are "Buy" rated. The 12-month price target is $19.28.
Ondas is another single-name drone company we are adding to our watchlist, alongside Unusual Machines, which we initiated coverage on last month before the massive spike in recent weeks.
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