Lake Street Capital Markets Reiterates Buy Rating on Safe Pro Group with $9 Price Target

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 driven by significant opportunities in Ukraine's demining market and strategic collaboration with Red Cat Holdings. According to an institutional equity research report dated January 5, 2026, analyst Max Michaelis highlighted growing investor recognition of opportunities in both defense and commercial markets.

The report emphasizes Safe Pro's positioning 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. This technology could translate into large-scale contracts through partnerships with the Ukrainian government, the United Nations Development Program, and Norwegian People's Aid.

Michaelis also underscored the strategic collaboration with Red Cat to integrate Safe Pro's AI into drone platforms used in U.S. Army programs, which could represent a $130 million to $175 million revenue opportunity with further upside as drone adoption scales. The Ukraine demining market and Red Cat collaboration together represent multihundred-million-dollar opportunities for the company.

Lake Street expects margin expansion as revenue shifts toward higher-margin AI software and cloud-based services, projecting consolidated gross margin of 57.5% in 2026 and 70% in 2027. The firm anticipates AEBITDA breakeven by 2027, according to Michaelis, Senior Research Analyst at Lake Street Capital Markets. The expanding mix of AI software and services is expected to drive gross margin expansion and support the company's path to profitability.

Safe Pro Group's technology platform is built on a cloud-based ecosystem powered by Amazon Web Services (AWS), providing scalable solutions for multiple markets including commercial, government, law enforcement and humanitarian sectors. The company's AI software, protective gear, and drone-based services work in synergy to deliver safety and operational efficiency across various applications.

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.

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