After a tough first quarter, Echelon Capital Markets analyst Rob Goff says things are looking up for Volatus Aerospace (Volatus Aerospace Stock Quote, Chart, News, Analysts, Financials TSX:VOL).

Goff says expectations are set for a strong second half to 2023 for the company.

“As noted, post-Q123 management maintained its 2023 guidance calling for revenue/gross profit at $52.0M/$16.6M with a 32% margin, where contributing factors include large outstanding RFPs, increased military sales, and commercially leveraging its technologies such as the Aerieport and ISR drones,” the analyst said.

Toronto-based Volatus provides integrated drone solutions in North America and globally, with business in the civil, public safety and defense markets and including imaging and inspection, security and surveillance, equipment sales and support and training as well as R&D, design and manufacturing.

In a research update to clients Monday, Goff maintained his “Speculative Buy” rating and one-year price target of $0.90, implying a return of 283 per cent at the time of publication.

Goff thinks VOL will post revenue of $47.1-millionin fiscal 2023 and grow that figure to $66.0-million the following year.

“Following a tough Q123, management left full-year 2023 guidance unchanged while highlighting headwinds that led to lower Q123 and Q223 revenues. While some revenues were arguably delayed, we saw some lost revenues in Q123 but expect to see improvements in Q223. We note the Company’s prior reference to a robust sales pipeline where we are optimistic that it will secure significant wins,” Goff added.