Red Cat Holdings Inc (NASDAQ:RCAT) is among the best Robinhood stocks under $20 to buy now. This drone stock has more than doubled over the past six months and returned more than 140% over the past year. Analysts continue to see upside potential in Red Cat shares.
On June 1, Roth/MKM initiated coverage on Red Cat Holdings Inc (NASDAQ:RCAT) with a Buy rating and a $25 price target, citing growth potential from its expanding drone portfolio and strong demand. The firm highlighted Red Cat’s production capacity designed to support $1 billion in revenue versus 2026 guidance of $150–$180 million, with Department of Defense procurements offering upside.
Roth/MKM expects 2026 growth to drive gross margin expansion toward management’s 30% target from the current 7.5%, while near‑term spending will prioritize growth over EBITDA profitability. M&A activity broadening defense exposure was noted as a potential catalyst, reinforcing Red Cat’s positioning as a key developer of military and commercial drone systems.
Red Cat Holdings Inc announced on May 28 that its Blue Ops unit has entered full-rate production of the Variant 7, also called V7. This is an uncrewed surface vessel designed for defense missions.
The company said the vessel supports missions like intelligence, surveillance, and reconnaissance. The platform can be adapted for different mission requirements.
Blue Ops is Red Cat’s maritime division. According to the company, V7 is supported by extensive research, development, and testing. Hodgdon Shipbuilding, the longest-running shipbuilder in the US, supported the Variant 7 prototype. The V7 is built with endurance, operational simplicity, and long-term reliability in mind.
Red Cat noted that the move of Variant 7 into full production comes amid federal efforts to strengthen the US maritime industrial base. The company said that the V7 adds a maritime platform to its family of systems and expands its ability to deliver robotic capabilities that align with White House and Pentagon priorities.
Red Cat Holdings Inc (NASDAQ:RCAT) is a provider of advanced drone and robotics solutions. It develops drones and software platforms that power them. Red Cat drone systems are used in defense, national security, and public safety operations across sea, land, and air.
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