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 based on multihundred-million-dollar opportunities in the Ukraine demining market and through its collaboration with Red Cat Holdings. In an institutional equity research report dated January 5, 2026, analyst Max Michaelis emphasized growing investor recognition of the company's positioning in both defense and commercial markets.
The report highlights Safe Pro's significant opportunity in the Ukrainian landmine detection market, estimating a total revenue potential of approximately $2.5 billion. This estimate is based on roughly 14 million hectares of mined land and an estimated $175 per hectare pricing model. The company'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 such as the Ukrainian government, the United Nations Development Program, and Norwegian People's Aid.
Michaelis also underscored the strategic collaboration with Red Cat Holdings to integrate Safe Pro's AI into drone platforms used in U.S. Army programs. This partnership is estimated to represent a revenue opportunity of $130 million to $175 million, with further upside potential as drone adoption scales. The integration aims to enhance the capabilities of drone platforms in defense applications, leveraging Safe Pro's advanced AI for threat detection.
Lake Street expects margin expansion as Safe Pro's revenue mix shifts toward higher-margin AI software and cloud-based services. The firm projects consolidated gross margin to reach 57.5% in 2026 and 70% in 2027, with AEBITDA breakeven anticipated in 2027. This financial outlook is based on the accelerating revenue momentum from the Ukraine demining initiatives and the Red Cat collaboration. For more information on Safe Pro Group Inc., please visit https://safeprogroup.com/. The latest news and updates relating to SPAI are available in the company's newsroom at http://ibn.fm/SPAI.
