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DroneShield's Sales Pipeline Disclosure Removal Net Negative for Forecasting Confidence, Jefferies Says

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DroneShield's (ASX:DRO) removal of the sales pipeline disclosure represents the loss of a key leading indicator, which is a net negative for forecasting confidence, Jefferies said in a note on Monday.

The company's pipeline momentum fell dramatically, with only around AU$6 million of incremental committed orders since April 20 weighing on expectations. Reduced disclosure further reduces forecasting confidence, prompting an around 10% downgrade for the revenue estimates and cuts of 3% to 5% for earnings-per-shares estimates from fiscal 2026 to fiscal 2028.

The company's committed revenue pipeline rose to AU$161 million as of May 26, only slightly higher than AU$155 million as of April 20.

Jefferies downgraded DroneShield to underperform from hold and cut the price target to AU$2.80 from AU$3.40.

DroneShield's shares tumbled 11% in recent Monday trade.

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