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.