Kraken Robotics wins target raise at Desjardins

Desjardins Securities analyst Benoit Poirier raised his target on Kraken Robotics  (Kraken Stock Quote, Chart, News, Analysts, Financials TSXV:PNG) to $5.00 from $4.00 in an Aug. 21 note, while maintaining a “Buy” rating. He said the move reflects confidence in long-term growth drivers such as battery contracts, even as near-term guidance and results present challenges.

As reported by the Globe and Mail, Poirier said another order from U.S. defence technology company Anduril Industries is likely, and that investors will focus on longer-term opportunities rather than the timing of individual contract wins. Kraken has a six-month window before its fourth-quarter results, leaving room for announcements that could cushion any adverse reaction to guidance revisions, he said.

The St. John’s-based company maintained its full-year outlook with its latest quarterly results, but Poirier trimmed his 2025 forecast, citing delays in KATFISH system deliveries. He now projects revenue of $118-million and EBITDA of $27-million for the year, down from prior estimates of $124-million and $30-million.

Poirier emphasized that the battery segment remains central to the story, with growth of 26% year-over-year in the second quarter pointing to momentum from programs such as Anduril’s Ghost Shark. He said new product launches and additional XL AUV wins are expected in 2025.

Looking longer term, Poirier shifted his valuation framework to 2027, which he said better reflects Kraken’s earnings potential as its new Dartmouth battery facility ramps to full capacity. He is modelling battery revenue of $118-million in 2027, a conservative figure compared with the company’s manufacturing capacity estimate of $200- to $250-million.

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