$68m is the value of announced contracts including 21/12/22? Bell Potter has revenue for the year of 54m in their forecast (and $60m next year) - I think they assumed delays in deliveries. But that assumption appears to be wrong. At $54m revenue, BP has an EBITDA of 20.7, and an npat of 21m. (lots of interest on cash I presume, and very little D and A). I'm not aware of other stock-brokers following DRO - if that is what many in the market are assuming, then we are well due for an upgrade I suspect.
Re next year - anything is possible - but look at the language re the order pipeline, and the scale of manufacturing capacity. Hard to panic when it is only 4 months since a whopping $33m order. And Israel has been invaded by terrorists who used drones to disable their border surveillance for a start.
I think a market worry could be that DRO will have problems moving to building it themselves. I'd imagine their South Aus partner is heavily involved and incentivised to assist with this process, or even has been bought out. They appear to currently cope with about a $70m revenue run rate.
All IMO
DRO Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
(20min delay)