TLDR
- Iran has fired over 500 ballistic missiles and 2,000 drones since the conflict began, with low-cost Shahed drones breaking through defenses
- Six U.S. servicemembers were killed and multiple regional targets hit, including the U.S. Embassy in Saudi Arabia
- Ondas stock has surged over 1,200% in the past year and just secured $6 million in new counter-drone orders from Middle East customers
- BlackSky and Iridium are seen as secondary plays, with Oppenheimer rating all three at Outperform
- Ondas subsidiary Airobotics also holds a $20 million purchase order for an autonomous border protection system
The ongoing air war between the U.S., Israel, and Iran is reshaping demand for counter-drone technology — and a handful of stocks are moving fast as a result.
Iran has fired more than 500 ballistic missiles and over 2,000 drones since the conflict began last Saturday, according to Gen. Dan Caine, chairman of the Joint Chiefs of Staff. While most were intercepted, those that got through caused serious damage.
Six U.S. servicemembers were killed at a base in Kuwait. The U.S. Embassy in Saudi Arabia was struck. Qatar’s main liquified-natural-gas plant was damaged. Iran’s weapon of choice is the low-cost Shahed drone, which can be deployed in large numbers to overwhelm defense systems.
Oppenheimer analyst Timothy Horan said the U.S. and Israel had “significantly underestimated Iran’s drone capabilities.” He noted the strikes are draining interceptor stockpiles and showing the limits of older anti-drone systems.
Ondas is one of the companies drawing attention. It makes the Iron Drone interceptor, which can disable multiple types of small drones. Oppenheimer rates the stock Outperform with a $16 price target. The stock rose 4.9% to $10.51 on Wednesday.
On March 6, Ondas announced it had received approximately $6 million in new orders for counter-drone systems from defense and homeland security customers in the Middle East and other regions. The orders cover dozens of Sentrycs Cyber-RF counter-UAS systems.
What the Sentrycs System Does
The Sentrycs system detects, tracks, and takes control of unauthorized drones using protocol manipulation. It can redirect drones away from protected areas or land them in designated zones. The company says it is built for fast deployment alongside existing detection systems.
Ondas CEO Eric Brock said there is “strong demand and a growing urgency among governments to find scalable solutions for defending critical infrastructure.”
The company also reported revenue growth of 208% over the last twelve months and holds more cash than debt on its balance sheet. Its market cap stands at $4.72 billion.
BlackSky and Iridium Also in Focus
BlackSky and Iridium are flagged as secondary plays on the drone boom. Both provide satellite and communications technology, which has become important as the air war unfolds in a “highly contested” communications environment across the Gulf region.
BlackSky stock rose 7% to $24.30 on Wednesday. Iridium gained 2.1% to $24.51. Oppenheimer holds Outperform ratings on both, with price targets of $31 and $34 respectively.
Other defense firms with counter-drone exposure include CACI, AeroVironment, Kratos Defense, Lockheed Martin, RTX, and Northrop Grumman — covering everything from jammers to laser systems to smart bullets.
Ondas subsidiary Airobotics holds a separate $20 million purchase order for an autonomous border protection system under a multi-year government contract.
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