--- title: "Red Cat splits Wall Street: a $6 price target against $25, with results due November 16" description: "Piper Sandler cut its target on Red Cat Holdings to $6 on October 23, the same week Red Cat opened orders for two uncrewed boats through its Blue Ops division and signed a takeover agreement for Austria's Steyr Motors. Six of seven analysts still say Buy at a $16.14 average, and the November 16 third-quarter report against $150 million to $180 million of guidance is the test." publisher: "The Inference" section: "Robotics & Defense" published: 2026-10-30T18:08:06.354Z modified: 2026-10-30T18:08:06.354Z canonical: https://theinference.org/article/red-cat-splits-wall-street-a-6-price-target-against-25-with-results-due-november-16 language: en keywords: "Red Cat Holdings, Analyst Calls, Defense, Drones, M&A" --- # Red Cat splits Wall Street: a $6 price target against $25, with results due November 16 > Piper Sandler cut its target on Red Cat Holdings to $6 on October 23, the same week Red Cat opened orders for two uncrewed boats through its Blue Ops division and signed a takeover agreement for Austria's Steyr Motors. Six of seven analysts still say Buy at a $16.14 average, and the November 16 third-quarter report against $150 million to $180 million of guidance is the test. ## The charge: Piper's $6 against a street at $16 On October 23, Piper Sandler analyst Clarke Jeffries [cut his price target](https://www.ad-hoc-news.de/boerse/news/unternehmensnachrichten/red-cat-balances-steyr-bid-new-vessel-lineup-against-a-trimmed-piper-sandler-target/70428489) on [Red Cat](https://theinference.org/markets/companies/red-cat-holdings) Holdings from $9 to $6 and kept his Neutral rating [1]. Red Cat is the Salt Lake City maker of drones and uncrewed boats, including the U.S. Army's Black Widow short-range reconnaissance drone [2][9]. The rest of the street sits on the other side of his call: six of seven analysts who rated the stock in the past three months say Buy, at an average target of $16.14, with Roth MKM at $25 [3]. Shares closed at $4.87 on October 27, near the 52-week low of $4.14, for a $743.7 million market value [3]; the October 29 close was $5.05 [4]. The average target stands at more than three times the share price. *Chart: **One stock, seven targets: Piper at $6, Roth at $25** Bar chart of seven analyst price targets for Red Cat Holdings, from Piper Sandler at $6 up to Roth MKM at $25, with the $4.87 share price and the $16.14 average target marked.* *Broker price targets as reported October 27, 2026; average target of $16.14 from TipRanks; shares closed at $4.87 on October 27, 2026. [1][3]* ## The evidence: $35.7 million booked against a $150 million floor The filings are short and dated. [Second-quarter revenue was $20.2 million](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000748268), up 527% from a year earlier; the net loss was $35.3 million; cash was $325.6 million at June 30 [3][5]. With $15.5 million booked in the first quarter [5], the half-year total is $35.7 million against reaffirmed 2026 guidance of $150 million to $180 million [3]. Even the floor now takes roughly $57 million a quarter through December, close to triple the June quarter's print [3][5]. *Chart: **Revenue is climbing and still a third of the pace guidance needs** Line chart of Red Cat quarterly revenue from Q1 2025 to Q2 2026, rising from $1.6 million to $20.2 million, with a reference line at the estimated $57.2 million quarterly pace needed in the second half to reach the guidance floor.* *Reported quarterly revenue in millions of dollars from SEC filings, calendar quarters. The reference line is an estimate, not a reported figure: the $150 million guidance floor less $35.7 million booked in H1 2026, spread over two quarters. [3][5]* ## The exhibits: orderable boats, a conditional tender, an unverified $200 million The bull case is announcements. Blue Ops, the maritime division, [opened orders for the 18-foot B-18 and the 39-foot B-39 on October 22](https://finance.yahoo.com/technology/articles/blue-ops-introduces-b-series-163000729.html), the B-39 already in low-rate production and the B-26 flagship in full-rate production [2][3]; the release names no customers and no revenue [2]. The bid for Steyr Motors, an Austrian maker of high-performance diesel engines whose marine engines Red Cat already fits in the B-26 [7][3], was announced October 19 and formalized in a business combination agreement with SMOT Acquisition, a wholly owned Red Cat subsidiary [6][1]. It [offers €39 in cash for all 5,251,261 shares](https://pulse2.com/red-cat-proposes-acquisition-of-steyr-motors-for-e39-per-share/), about €205 million [1], with anchor holder B&C Holding committed to tender its 15% and Steyr's chief executive, Julian Cassutti, his own shares [6]. Completion still needs 50% plus one share and clearances in Austria, Italy, Australia and the United Kingdom; the tender closes December 18 [6][1]. Steyr trades at €35.37, about 9% below the offer [7]. One weekly recap calls the acquisition closed and says SRR2, a U.S [8]. Army program, could bring more than $200 million over two years; it is an AI-generated summary naming no document [8]. ## The verdict watch: November 16 Third-quarter results land after the close on November 16 [1][3]. Piper's $6 values the losses and today's multiple; the bulls' $16 to $25 values a Navy buying 30 medium uncrewed vessels at about $40 million each, from three other builders so far [3], plus $325.6 million of cash that funds the bid [3][5]. The B-18 and B-39 are open for orders; Red Cat has named no customer, and November 16 is when it has to show booked revenue [2][3]. ## Takeaway Red Cat's November 16 third-quarter report is the test: $35.7 million booked in the half against a $150 million guidance floor that needs roughly $57 million a quarter, with six of seven analysts at Buy and Piper Sandler alone at Neutral and $6. ## Sources 1. [ad-hoc-news.de, Red Cat Balances Steyr Bid, New Vessel Lineup Against a Trimmed Piper Sandler Target, 29 October 2026](https://www.ad-hoc-news.de/boerse/news/unternehmensnachrichten/red-cat-balances-steyr-bid-new-vessel-lineup-against-a-trimmed-piper-sandler-target/70428489) 2. [Red Cat Holdings press release (GlobeNewswire via Yahoo Finance), Blue Ops Introduces B-Series Maritime Portfolio with Production-Ready B-18 and B-39 Uncrewed Surface Vessels, 22 October 2026](https://finance.yahoo.com/technology/articles/blue-ops-introduces-b-series-163000729.html) 3. [Streetwise Reports, New B-Series USVs Open for Orders as Navy Seeks Sea Drones Now, 27 October 2026](https://www.streetwisereports.com/article/2026/10/27/new-b-series-usvs-open-for-orders-as-navy-seeks-sea-drones-now.html) 4. [Yahoo Finance Canada, Red Cat Holdings, Inc. (RCAT) quote page, 30 October 2026](https://ca.finance.yahoo.com/quote/RCAT/seasonality/) 5. [Red Cat Holdings, quarterly figures from its SEC filings, retrieved 30 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000748268) 6. [Pulse 2.0, Red Cat Proposes Acquisition Of Steyr Motors For €39 Per Share, 19 October 2026](https://pulse2.com/red-cat-proposes-acquisition-of-steyr-motors-for-e39-per-share/) 7. [MarketScreener, Steyr Motors AG: Q3 recovery, FY26 guidance intact, Red Cat's cash offer on the table, 22 October 2026 (quote and profile data as of 30 October 2026)](https://www.marketscreener.com/news/steyr-motors-ag-q3-recovery-fy26-guidance-intact-red-cata-s-cash-offer-on-the-table-ce785cdcdb8ff721) 8. [TradingView, Weekly Recap: Steyr Motors acquisition and SRR2 $200M revenue driver, 29 October 2026 (AI-generated summary)](https://www.tradingview.com/news/tradingview:4d2f6682b455c:0-weekly-recap-steyr-motors-acquisition-and-srr2-200m-revenue-driver/) 9. [Red Cat Holdings, News Archive (In the News), retrieved 30 October 2026](https://redcat.red/news/) --- Red Cat splits Wall Street: a $6 price target against $25, with results due November 16 — The Inference. Canonical: https://theinference.org/article/red-cat-splits-wall-street-a-6-price-target-against-25-with-results-due-november-16