RCAT Stock Gets Wall Street Thumbs Up – This Analyst Sees Upside Potential Of Nearly 100% From Current Levels

• H.C. Wainwright initiated Red Cat with a Buy rating and $20 price target, implying over 100% potential upside from Tuesday’s closing price of $9.77.
• On Stocktwits, retail chatter surrounding the stock surged about 271% over the past 24 hours.
• The company expects annual revenue in the short- to medium-term to be between $150 million and $180 million.

Shares of Red Cat Holdings Inc. (RCAT) climbed over 4% on Wednesday, extending a four-session winning streak, after H.C. Wainwright initiated coverage with a 'Buy' rating and a $20 price target — implying a potential upside of more than 100% from the stock's Tuesday close.

The firm noted that it expects Red Cat Holdings to convert NATO and Asia-Pacific allied orders into ‘recurring contract flow,’ according to TheFly.

Red Cat Holdings is a provider of advanced all-domain drone and robotic solutions for defense and national security.

The 12-month average price target on the stock is $21.75, implying a premium of about 122% over Tuesday's closing price. According to Koyfin data, four analysts cover the stock, and all have recommended a ‘Buy’ or higher rating.

RCAT’s Black Widow Drone Order Book

In April, Red Cat disclosed details of a 173-system order from Japan's Ministry of Defense. The company stated that the award was the result of a competitive acquisition led by the Acquisition, Technology & Logistics Agency, with the Japanese Army as the end user. 

The systems have been funded under the Japan Fiscal Year 2026, said Red Cat Holdings. Each system included two Black Widow aircraft and one ground control station. The Japan deal followed a previous Australian Army order, making it the second order from the Asia-Pacific region to select Black Widow for military use.

The company stated that in March, a NATO ally also selected the system through a competitive tender facilitated by the NATO Support and Procurement Agency, with deliveries slated for 2026.

Red Cat also joined hands with Spetstechnoexport, a Ukrainian state-owned enterprise under the Ministry of Defense, to collaborate on next-generation unmanned and robotic systems across the air, land, and maritime domains. 

The partnership was formalized through a memorandum of understanding, and it also made the company one of the first U.S. majors to formally collaborate with a Ukrainian state-owned defense enterprise on multi-domain unmanned systems, the company stated.

RCAT’s Q1 Earnings

Red Cat Holdings' first-quarter revenue of $15.5 million grew about 869% from the year-ago period, and it expects the total annual revenue for the short- to medium-term to be between $150 million and $180 million.

What Retails Thinks About RCAT

On Stocktwits, retail chatter surrounding the stock has risen by over 271% in the past 24 hours. 

One bullish user said the company should expect new contracts in the next couple of months.

The retail sentiment surrounding RCAT has improved to ‘bullish’ from ‘neutral’ while message volumes remained ‘low’ over the past 24 hours.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: CORT Stock Hits Highest Levels In 2026 – Cushing’s Syndrome Drug NDA Resubmission Extends 5-Session Rally