Ondas Inc. (ONDS): A Bull Case Theory

We came across a bullish thesis on Ondas Inc. on Bullseye Research’s Substack by Bullseye Investing. In this article, we will summarize the bulls’ thesis on ONDS. Ondas Inc.’s share was trading at $10.64 as of February 2nd.

Ondas Inc. provides private wireless, drone, and automated data solutions in the United States and internationally. ONDS operates at the forefront of autonomous systems and industrial connectivity, targeting defense, public safety, and critical infrastructure markets. The company develops advanced drone systems, counter-drone solutions, ground robotics, and private mission-critical networks, positioning itself across multiple high-growth segments in the defense and security ecosystem.

Ondas’s Autonomous Solutions (OAS) segment, which generates the bulk of revenue, has expanded through acquisitions like American Robotics, Airobotics, Iron Drone, and Apeiro Motion, enabling it to deliver 24/7 autonomous aerial and ground monitoring, data capture, and defense-focused applications. These solutions serve industrial clients in oil & gas, mining, and agriculture, as well as government and military customers, with a competitive edge in multi-domain autonomous operations.

Ondas Networks (ON), though smaller in revenue contribution, provides licensed private communication networks for critical infrastructure applications, particularly railroads, utilities, and defense. Its adoption of the IEEE 802.16s standard and an exclusive partnership with Siemens Mobility create a durable moat and position ON to modernize North America’s aging rail communications systems. While ON faces adoption delays due to legacy system inertia, its long-term growth potential remains significant.

Ondas benefits from strong secular tailwinds, including the U.S. government’s planned expansion of drone purchases and sustained defense spending, alongside industrial modernization in mission-critical networks. Despite these opportunities, risks remain from regulatory erosion, competitor advancements, and reliance on concentrated contracts. Financially, Ondas is in an early-stage growth phase, with negative earnings but a substantial cash runway of $433 million and rapidly expanding revenues—OAS grew 3,624% year-over-year and ON 1,797%, reflecting robust execution and high operational leverage.

Ondas’s valuation, with an EV/revenue of 44.4, is priced for high growth, leaving limited margin for error, yet the company presents a compelling opportunity for investors bullish on autonomous defense and industrial automation trends, with a one-year price target of $8.50 and potential catalysts in government contracts and sector tailwinds.

Previously, we covered a bullish thesis on Cisco Systems, Inc. (CSCO) by Kroker Equity Research in May 2025, which highlighted its transformation into a full-stack software and infrastructure platform, growth in recurring software revenue, and the $28B Splunk acquisition. CSCO’s stock price has appreciated by approximately 26.15% since our coverage. Bullseye Investing shares a similar perspective but emphasizes Ondas Holdings’ ($ONDS) rapid growth in autonomous systems and mission-critical networks.

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Disclosure: None.