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 emphasized in a January 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 highlights two major opportunities for Safe Pro Group. First, the company's positioning in the Ukrainian landmine detection market represents a significant revenue opportunity. Michaelis estimates a total market of approximately $2.5 billion based on roughly 14 million hectares of mined land and an estimated $175 per hectare pricing model. Safe Pro'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 like the Ukrainian government, the United Nations Development Program, and Norwegian People's Aid.
Second, the strategic collaboration with Red Cat Holdings to integrate Safe Pro's AI into drone platforms used in U.S. Army programs represents another substantial opportunity. Michaelis estimates this collaboration could generate $130 million to $175 million in revenue, with further upside as drone adoption scales across defense applications. The company's scalable platform, built on a cloud-based ecosystem and powered by Amazon Web Services (AWS), targets multiple markets including commercial, government, law enforcement, and humanitarian sectors.
Lake Street expects margin expansion as Safe Pro's revenue shifts toward higher-margin AI software and cloud-based services. The firm projects consolidated gross margin of 57.5% in 2026 and 70% in 2027, with adjusted EBITDA breakeven anticipated in 2027. This financial improvement is expected to be driven by the expanding mix of AI software and services, which together with the Ukraine demining market and Red Cat collaboration represent multihundred-million-dollar opportunities.
The growing investor recognition of opportunities both in Ukraine and across broader defense and commercial markets positions Safe Pro Group for significant growth. The company's technology provides advanced situational awareness tools for defense, humanitarian, and homeland security applications globally, leveraging commercially available drones with proprietary machine learning and computer vision technology. For more information about Safe Pro Group, visit https://safeprogroup.com/. The latest news and updates relating to SPAI are available in the company's newsroom at http://ibn.fm/SPAI.
