Lake Street Capital Markets has reiterated a Buy rating and $9 price target for Safe Pro Group (NASDAQ: SPAI), highlighting the company's potential for significant revenue growth driven by its involvement in Ukraine's landmine detection market and a strategic collaboration with Red Cat Holdings. Analyst Max Michaelis, in a report dated Jan. 5, 2026, pointed to accelerating revenue momentum through 2026 and 2027, with expanding margins and adjusted EBITDA breakeven expected by 2027.
Safe Pro's patented AI platform, capable of detecting over 150 types of explosive threats from drone imagery, positions the company as a key player in the Ukrainian demining effort. Michaelis estimates the total revenue opportunity in Ukraine at approximately $2.5 billion, based on 14 million hectares of mined land and a pricing model of $175 per hectare. The technology offers a faster and safer alternative to manual demining, potentially leading to large-scale contracts with the Ukrainian government, the United Nations Development Program, and Norwegian People's Aid.
In addition to the Ukraine market, Safe Pro's collaboration with Red Cat Holdings to integrate its AI into drone platforms for U.S. Army programs represents a $130 million to $175 million revenue opportunity, according to Michaelis. As drone adoption scales, further upside is anticipated. The analyst also expects margin expansion as the company shifts toward higher-margin AI software and cloud-based services, projecting consolidated gross margins of 57.5% in 2026 and 70% in 2027, with AEBITDA breakeven in 2027.
Safe Pro Group (NASDAQ: SPAI) is a mission-driven technology company delivering AI-enabled security and defense solutions. Its platforms, like SPOTD, provide advanced situational awareness for defense, humanitarian, and homeland security applications. The company's cloud-based ecosystem, powered by Amazon Web Services (AWS), targets commercial, government, law enforcement, and humanitarian sectors. For more information, visit https://safeprogroup.com/.
The latest news and updates relating to SPAI are available in the company's newsroom at http://ibn.fm/SPAI.
