Draganfly (CNSX:DPRO) Is Up 8.9% After Asia-Pacific Defense Collaboration News Has The Bull Case Changed?

In December 2025, Draganfly Inc. announced a collaborative framework with Babcock International Group and CiTech International to explore multi-company defense and security initiatives across the Asia-Pacific region, following the execution of a Non-Disclosure Agreement among the parties. This collaboration combines Draganfly’s NDAA-compliant unmanned aerial systems with Babcock’s mission-critical engineering and CiTech’s high-assurance digital architectures to target areas such as defense modernization, maritime and border security, disaster response, and critical infrastructure protection. Next, we’ll examine how Draganfly’s focus on NDAA-compliant unmanned aerial systems within this Asia-Pacific defense collaboration shapes its investment narrative. Uncover the next big thing with financially sound penny stocks that balance risk and reward.What Is Draganfly's Investment Narrative?To own Draganfly today, you have to believe that its niche in NDAA-compliant drones and defense-adjacent use cases can eventually justify a rich valuation and ongoing capital needs. The new Asia-Pacific framework with Babcock and CiTech fits that thesis neatly, because it aligns Draganfly with established defense contractors in a region prioritizing security resilience, without immediately changing the company’s near term financial profile. Short term, the key catalysts still look like contract wins, proof of recurring revenue, and evidence that recent financing rounds are translating into commercial traction rather than just dilution. At the same time, the going concern flag, persistent losses, and a Price-To-Sales multiple well above peers remain front-of-mind risks that this collaboration alone does not resolve. However, one issue in particular could materially change the risk-reward equation that investors should understand. Our comprehensive valuation report raises the possibility that Draganfly is priced higher than what may be justified by its financials.Exploring Other PerspectivesCNSX:DPRO 1-Year Stock Price Chart Eight fair value views from the Simply Wall St Community span roughly US$2 to just over US$20, underlining how far apart expectations sit. When you set that against Draganfly’s ongoing losses and reliance on fresh equity, it is clear you are weighing very different futures for the business.Explore 8 other fair value estimates on Draganfly - why the stock might be worth as much as 95% more than the current price!Build Your Own Draganfly NarrativeDisagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.A great starting point for your Draganfly research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.Our free Draganfly research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Draganfly's overall financial health at a glance.Seeking Other Investments?These stocks are moving-our analysis flagged them today. Act fast before the price catches up:AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech