RE:$1.80 target, exceeding the $1.75 consensus.Free55dom wrote: * Echelon Wealth Partners analyst Rob Goff initiated coverage of Drone Delivery Canada Corp. (FLT-X) with a “speculative buy” rating and $1.80 target, exceeding the $1.75 consensus.
"We believe the commercial drone delivery industry is set to emerge as a major component in logistics planning with its initial focus on the B2B market for dedicated routes in remote regions and industrial supply chain delivery services," he said. "Initial considerations for the B2B phase are expected to be redefined as the sector’s ambitions evolve towards B2C deliveries."
“Our thesis rests on the ability of drones to deliver goods faster, with cost and reach advantages. The stringent regulatory overview that has governed its maturation is likely to represent a key competitive moat enabling first movers such as DDC to establish a profitable, sustainable business model where consumer safety is paramount. With the drone market projected to reach US$27-billion by 2030, we forecast DDC revenues/EBITDA surpassing $100-million/$50-million within five years.”
https://www.theglobeandmail.com/investing/markets/inside-the-market/article-tuesdays-analyst-upgrades-and-downgrades-114/
”With the drone market projected to reach US$27-billion by 2030, we forecast DDC revenues/EBITDA surpassing $100-million/$50-million within five years.”
Keep in mind this is speculation and a speculative buy. However, if DDC would generate 50M EBITDA, it would be amazing. At a multiple of 24.81 as suggested by https://www.equidam.com/ebitda-multiples-trbc-industries/, we would see a valuation of $1,240,500,000.Which would be around 6.93$ a share. Multiple that by 2 if we would reach 100M EBITDA. This is assuming we do not take on any major debt. This is assuming a standard technology multiple. This multiple could increase or decrease depending on many factors. However, if we have first move advantage, take on large market share and have a lot more room to grow (given the fact the drone market is just getting started) it could be higher!