Shares of Ondas Holdings Inc. (NASDAQ: ONDS) have drawn renewed attention after Stifel initiated coverage on the company with a Buy rating and set a $13 price target, pointing to substantial upside from current levels as the firm highlights long-term growth potential in the unmanned systems market.
Based on Ondas’ stock closing price of $8.09 on Tuesday, December 16, Stifel’s $13 target implies an upside of approximately 60.7%. ONDS shares were trading slightly higher in premarket action at around $8.17 before the regular session.
In its initiation note, Stifel described Ondas as well positioned to emerge as a leader in the unmanned systems space, with particular exposure to military drone applications. The research firm characterized the sector as being at a “generational inflection point,” driven by changing defense priorities and accelerating adoption of autonomous technologies.
ONDS stock performance
Stifel’s bullish view is supported by Ondas’ stock recent operating performance, including revenue growth of 208.4%. The firm emphasized that this growth reflects early traction in a market that remains underpenetrated relative to its long-term potential.
Stifel analyst Jonathan Siegmann cautioned investors against focusing too heavily on elevated valuation multiples tied to current and near-term estimates. According to Siegmann, those multiples are typical of companies operating at an early stage of disruption, particularly in industries undergoing structural shifts such as military unmanned systems.
Stifel’s accompanying deep dive report of ONDS stock also highlighted the current scale of government spending on drones, noting that it represents only a small fraction of total defense budgets. This dynamic, the firm argued, leaves significant room for expansion over the coming decade as drone technologies become more deeply integrated into military force structures.
Looking ahead, Stifel expects Ondas to develop what it described as a “unique self-reinforcing flywheel,” combining access to capital, increasing customer and partner credibility, and accelerating growth. The firm believes this dynamic could support sustained upside in the stock as the company scales its presence within the defense and unmanned systems ecosystem.
Finally, last week Finbold noted Ondas stock as one of ten sub-$10 billion stocks to watch in 2026.
