Lake Street Capital Markets maintained its Buy rating and $9 price target for Safe Pro Group Inc. in a January 5, 2026, research report, citing accelerating revenue momentum through 2026 and 2027. Analyst Max Michaelis emphasized the company's positioning in two significant markets representing multihundred-million-dollar opportunities. The report detailed Safe Pro's potential in the Ukrainian landmine detection market, estimating a total revenue opportunity of approximately $2.5 billion 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, potentially leading to large-scale contracts through partnerships with entities including 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 $130 million to $175 million revenue opportunity, with further upside potential as drone adoption scales across defense applications. The integration aims to enhance drone-based reconnaissance and threat detection capabilities for military use. Beyond specific market opportunities, 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 of 57.5% in 2026 and 70% in 2027, with adjusted EBITDA breakeven anticipated in 2027, attributed to the growing contribution of the company's AI-enabled platforms and reduced reliance on lower-margin hardware components.
The analysis suggests Safe Pro Group is positioned for a strong inflection in revenue growth as its collaboration with Red Cat Holdings ramps through 2026 and into 2027. Michaelis cited growing investor recognition of opportunities both in Ukraine's humanitarian demining efforts and across broader defense and commercial markets where AI-powered threat detection systems are increasingly valued. Lake Street's report represents continued institutional support for Safe Pro's business strategy, which leverages commercially available drones with proprietary machine learning and computer vision technology. The company's cloud-based ecosystem, powered by Amazon Web Services, provides a scalable platform for multiple markets including commercial, government, law enforcement and humanitarian sectors. 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.
