The valuation thorn
Despite the stellar growth in revenues, profits and order books, most listed drone and drone-linked companies are already trading at rich valuations that assume years of successful execution, localisation and technology development. The sector also remains vulnerable to rapid technological change, evolving procurement priorities and increasing competition as more players enter the market.
Drones are undoubtedly a large opportunity, but investors need to separate the opportunity size from the probability of capturing it,” said Ashwini Shami, President and Chief Portfolio Manager at OmniScience Capital.