Cheesetopher : Technical Index: Technical analysis seems to indicate that the trend in Droneshield's share price is relatively bearish, implying short term price decreases. I would assume that, given the time frames for the technical analysis, this analysis focuses only on short term rises and falls in the share price, and may not be indicative of DRO.AU's full potential at the end of this year. Therefore, subject to an analysis of the company's finances and news, it is possible for DRO.AU share prices to return to their July high of $2.72.
Financial Indicator: Financial Indicators show a substantial revenue increase by 105.44%, however, the company's EPS has decreased by 30%, performing significantly under the Financial estimate for FY2024. On the other hand, Morningstar Research highlighted Droneshield's high price to earnings ratio of 80.05 which is 87% greater than its sector peers. This could potentially indicate a rise in share price, however, as further stated by Morningstar research, the uncertainty of DRO.AU share prices have been described as extreme.
News Around: Bell Potter from the Motley Fool suggested a price target of $1.35 for the stock, which had now been surpassed. Oleg Vornik also blamed media reporting for the fall in share price from the July high. Regardless of price estimates, media reporting appears to be a massive influence on DRO.AU share prices, potentially explaining some of the volatility in the market. It is also possible that the spike to $2.72 is also merely a product of the media, especially given the intense media attention towards wars in Palestine and Ukraine. Furthermore, there appears to be limited evidence from any broker that supports a price target as high as $2.72 per share.
In conclusion, due to the high volatility of DRO.AU share prices, it remains possible that DRO.AU shares will return to their July high of $2.72, however, it appears that there is no solid evidence to support that this is the likely outcome for this year.