'Ready for Liftoff': Needham Picks 2 Drone Stocks Set to Fly High

Whatever your view of government, it's hard to ignore the impact federal spending can have on the broader economy. Congressional appropriations always reflect the majority's priorities, but they also offer clear signals about which sectors are poised to benefit from Washington's attention.TipRanks Cyber Monday Sale Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off The drone industry – unmanned aerial vehicles – is one of those areas. Drones now play a role across a wide range of fields, from defense and public safety to mapping, inspection, and delivery services. And continued innovation is only strengthening their relevance. Improvements in battery efficiency, AI-driven autonomous flight, and advanced sensor technology are steadily expanding the capabilities and real-world adoption of drones. Globally, the drone market reached $73.06 billion in 2024, and according to Grand View Research, that figure is expected to climb to $163.6 billion by 2030, for a CAGR of 14.3% over the forecast period. Against this backdrop, Needham analyst Austin Bohlig lays out how government demand is beginning to shape the next phase of the industry's growth. "Our core thesis has long been anchored by the unprecedented investment from the U.S. Department of War, driven by the One Big Beautiful Bill (OBBB), which we estimate is allocating over $10B toward offensive and defensive unmanned systems. While the timing of this funding deployment has been a key question among investors, recent actions suggest that capital is now beginning to flow," Bohlig explained. With that tailwind in mind, Bohlig highlights two drone stocks he believes have the potential to double, or more, over the coming year. And according to the TipRanks platform, both names have picked up Buy ratings from the rest of the Street as well. Let's take a closer look. Draganfly (DPRO) The first drone company we'll look at here, Draganfly, has over 25 years of experience in the field and produces a varied line of drones and ancillary equipment and software. The company's drones have found use in multiple fields, including agriculture, insurance, public safety and public health, energy, and defense. Draganfly's first commercial quadrotor UAV was launched in 1999, and in 2001 the company was the first to put multirotor UAVs with integrated camera systems on the commercial market. Draganfly has built its drone business on a foundation of engineering skill. The company has developed its own institutional experience in fields like aviation, model building, and robotics – all vital in the drone industry – and works to combine both artisanal craftsmanship and engineering savvy in its drone lines. Like many commercial drone companies, Draganfly is expanding its government exposure. The company has close connections with governmental organizations, particularly with law enforcement and the military, where its capabilities in providing intelligence and data infrastructure are in high demand. Draganfly is able to design custom airframes, payloads, and robotics to meet the strict demands of military-grade customers. Last month, Draganfly provided live demonstrations of its Outrider Border Drone platform for a variety of Federal, state, and local law enforcement officials, as well as military officers, in Cochise County, Arizona. The company received feedback indicating that the demonstrations are driving increased interest in the drone platform among law enforcement and military officials in the border region. Also in November, Draganfly scored a significant contract win, securing an international military order for its Commander 3XL drones. These drones feature a 50-minute flight time over 2 kilometers, with a 22-pound payload capacity, and are configurable for a wide range of missions. They are small, man-portable quadcopters, well suited to field surveillance. Due to regulatory restrictions, Draganfly could not publicly reveal customer specifications. In his coverage of Draganfly, analyst Bohlig points out several factors that point toward a bright future. Laying out a bullish case for the stock, he writes, "We continue to believe the company is entering 2026 with a robust pipeline, led by the upcoming Outrider and the currently available Flex FPV platforms. Coupled with large scale defense programs in Canada and U.S., for border security as well as onsite production of drones at the base level, we believe DPRO remains on plan for a meaningful inflection in revenues in 2026. Given the size of these opportunities, coupled with the company's planned capacity expansion to ~$400M in 2026, we see the opportunity for potential meaningful upside to estimates as these programs ramp." Bohlig quantifies his stance with a Buy rating and a $14 price target that suggests a robust one-year upside potential of 101%. (To watch Bohlig's track record, click here) The Strong Buy consensus rating here is based on 4 unanimously positive analyst reviews. Shares in DPRO are currently selling for $6.95 and the $14.50 average price target implies a 109% gain over the next 12 months. (See DPRO stock forecast)