ONDS - Ondas downgraded at Oppenheimer citing venture stage company with minimal revenue
2023-03-17 12:21:20 ET
- Ondas ( NASDAQ: ONDS ) trades 11% down after Oppenheimer downgraded the stock to Perform (PT, $3) from Outperform citing Q4 results, 2023 guidance lower than expected.
- Rating agency believes that Ondas remains in venture stage with minimal revenue and a very high cash burn.
- However, analyst day reaffirms large TAM; in its recent investor presentation, the company announces that it is in a breakout position for 2023 with $26-$30M projected revenue and more than 100% projected revenue growth in FY24 amid acceleration of platform adoption.
- Networks revenue is seen at $20M while newly formed Ondas Autonomous Networks represents $8M.
- Adj. EBITDA is estimated to be between ~$19M to $24M.
- Supporting the Perform rating is that the company entered 2023 with a backlog of ~$13.1M (Networks ad Drones) compared to the forecasted $8M bookings for Networks only.
- The company's wholly-owned subsidiary Airobotics will collaborating with Rafael Advanced Defense Systems on leveraging Airobotics' Optimus Drone Infrastructure and Rafael's newly unveiled METRO DOME and DRONE DOME to enable advanced autonomous drone operations and services for municipal and government clients in U.A.E.
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Ondas downgraded at Oppenheimer citing venture stage company with minimal revenue