Lake Street Capital Markets Reiterates Buy Rating for Safe Pro Group with $9 Price Target

Lake Street Capital Markets has reiterated its Buy rating and $9 price target for Safe Pro Group, citing accelerating revenue momentum through 2026 and 2027. Analyst Max Michaelis highlighted in a Jan. 5, 2026 institutional equity research report that the company is positioned for a strong inflection in revenue growth as its collaboration with Red Cat Holdings ramps up. The report emphasizes growing investor recognition of opportunities both in Ukraine and across broader defense and commercial markets.

The Ukrainian landmine detection market represents a substantial opportunity for Safe Pro Group, with Michaelis estimating a total revenue potential of approximately $2.5 billion. This estimate is based on roughly 14 million hectares of mined land and an estimated $175 per hectare pricing model. The company's patented AI platform, capable of detecting more than 150 types of explosive threats from drone imagery, is viewed as significantly faster and safer than manual demining methods. This technology could translate into large-scale contracts through partnerships with entities such as the Ukrainian government, the United Nations Development Program, and Norwegian People's Aid.

Beyond the Ukrainian market, the strategic collaboration with Red Cat Holdings presents additional significant revenue potential. Michaelis estimates that integrating Safe Pro's AI into drone platforms used in U.S. Army programs could represent a $130 million to $175 million revenue opportunity, with further upside as drone adoption scales. The Ukraine demining market and Red Cat collaboration together represent multihundred-million-dollar opportunities for the company.

Lake Street Capital Markets projects margin expansion as Safe Pro Group's revenue shifts toward higher-margin AI software and cloud-based services. The firm anticipates consolidated gross margin of 57.5% in 2026 and 70% in 2027, with AEBITDA breakeven expected in 2027. This expanding mix of AI software and services is expected to drive both gross margin expansion and improved profitability metrics. For more information on Safe Pro Group Inc., please visit https://safeprogroup.com/. The latest news and updates relating to SPAI are available in the company's newsroom at http://ibn.fm/SPAI.