Ondas’ Defense Push Gets Another Vote Of Confidence – Roth Capital Sees 44% Upside

• Roth Capital analyst Scott Searle maintained a Buy rating and $13 price target on Ondas.
• The firm said the Aran Defense acquisition strengthens Ondas’ Israeli manufacturing base. 
• Ondas has also secured a multi-million-dollar Israeli Ministry of Defense contract to develop low-cost tactical attack drones. 

Ondas (ONDS) stock is gaining attention after Roth Capital kept its ‘Buy’ rating following the company’s $33 million purchase of Aran Defense. The analyst believes the deal will strengthen Ondas’ manufacturing and engineering operations in Israel as demand for autonomous defense technology grows. 

Roth Capital Sees 44% Upside For Ondas After Aran Defense Deal 

Analyst Scott Searle reiterated a Buy rating on Ondas and kept his $13 price target following Ondas’ acquisition of Israel-based Aran Defense. The price target implies a 44% upside to the stock’s last close. Searle said the transaction may appear relatively small, but it strengthens Ondas' ongoing approach of using acquisitions to add valuable products and operational capabilities.

Roth Capital believes the purchase could help Ondas build its local industrial base while supporting the company's efforts to meet rising demand for autonomous defense technologies. Having additional production and engineering resources in Israel could also give Ondas greater control over how quickly it develops and delivers its systems.

On Monday, Ladenburg Thalmann analyst Jon Hickman raised his Ondas price target to $22.75 from $21.50 while maintaining a Buy rating, implying 152% upside. The revision followed Ondas’ strong Q2 performance, with revenue reaching $83.8 million, up 67% sequentially and roughly 13 times from last year, beating estimates of $63 million. 

Ondas stock traded over 1% lower overnight, ahead of Wednesday. The stock is headed for a monthly gain. 

ONDAS’ Israeli Manufacturing Expansion

The acquisition adds roughly 4,400 square meters of Israeli facilities covering engineering, machining, assembly, integration, quality control, warehousing, prototyping and other production functions.

Aran Defense generated about $17 million of revenue in 2025, up from approximately $12 million a year earlier. Revenue is projected to reach around $26 million in 2026, with positive adjusted EBITDA. 

"As demand across our defense businesses continues to grow, expanding localized manufacturing capacity is becoming increasingly important to our ability to execute," said Eric Brock, Chairman and CEO, Ondas.

Ondas has also won a multi-million-dollar Israeli Ministry of Defense contract to develop and produce next-generation, low-cost tactical attack drones. The “Digital Bat” program aims to deliver scalable, software-driven systems for frontline use and aligns with priorities of the U.S. Drone Dominance Program.

On Tuesday, Ondas officially opened a new unmanned aircraft training, testing and flight facility at Ohio’s National Advanced Air Mobility Center of Excellence. The site will be operated by Ondas Sentinel, which includes DZYNE Technologies, acquired by Ondas in July. 

ONDS Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

ONDS stock has declined 7% year-to-date. 

Also See: Ondas Stock Heads For Monthly Gain: Why This Analyst Still Sees 150% Upside?

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