Litchfield Hills Research has initiated coverage of Safe Pro Group (NASDAQ: SPAI) with a Buy rating and an $8 price target, recognizing the company's innovative AI-powered drone imagery solutions for defense and security applications. Analyst Theodore R. O'Neill highlighted SPAI's patented mine detection technology, which has been proven effective in Ukraine, as a 21st-century solution to outdated demining methods. The company's SpotlightAI™ platform can detect threats in under 0.2 seconds and operates via cloud or edge computing, having already processed over 1.6 million drone images.
The technology is supported by strong intellectual property protections and growing demand from global humanitarian and military efforts. SPAI's diverse operating units include Safe Pro AI, which develops its proprietary AI analysis engine; Airborne Response, delivering drone-based critical infrastructure inspection and public safety solutions; and Safe-Pro USA, manufacturing body armor and EOD suits. Customers include Florida Power & Light, Motorola Solutions, and humanitarian organizations in Ukraine. The company is expected to benefit from the recently passed One Big Beautiful Bill Act, which allocates $33 billion in federal funding to AI and drone technologies.
With forecasted revenue of $12.5 million in 2026 and projected breakeven by year-end, SPAI currently trades at a steep discount to peers, supporting the valuation thesis. According to O'Neill, SPAI's proprietary AI ecosystem offers hyper-scalable image processing for defense, infrastructure, and agriculture applications. The $8 target is based on a discounted earnings model reflecting anticipated revenue traction, supported by robust insider ownership (60%) and a unique technology moat. Given accelerating demand for autonomous surveillance and threat detection tools, Litchfield Hills views SPAI as both undervalued and well-positioned to capture long-term upside across government and commercial markets.
