Red Cat Stock Could Fly On Pentagon's Biggest-Ever Drone Bet, Evercore Says

Evercore ISI initiated coverage of Red Cat Holdings Inc. (NASDAQ: RCAT ) on Monday with an Outperform rating and a $15 price target, in a note titled “Ready. Set. Fly” that frames the Department of Defense’s shifting procurement priorities as a multi-year tailwind for the company. RCAT stock is climbing. See the real-time price action here. Evercore Initiates RCAT at Outperform, $15 price target Analyst Amit Daryanani said the Pentagon’s drone budget has undergone a structural shift, with the Department of Defense proposing $53.6 billion for its Drone Dominance Program in fiscal 2027 — the largest single commitment to drones in Pentagon history. Daryanani argued the shift could create a recurring replenishment cycle for Red Cat, since drones are increasingly treated as co...