After being cut in half: UBS identifies huge potential in Next Vision

Swiss investment bank UBS has initiated coverage of Next Vision with a 'Buy' recommendation and a target price of 434 shekels per share, reflecting an upside of approximately 99%. The bank forecasts revenues of $407 million in 2026 and average annual growth of about 55% until 2030. The stock rose about 4% but remains 47% below its peak.

Swiss investment bank UBS has initiated coverage of Israeli company Next Vision, a manufacturer of stabilized cameras for drones and UAVs, with a 'Buy' recommendation and a target price of 434 shekels per share – an upside of approximately 99% from the market price. In an optimistic scenario, the target price reaches 682 shekels, an upside of over 200%. UBS forecasts revenues of $407 million in 2026, above the company's own guidance of $355 million, and average annual growth of about 55% to revenues of over $1.5 billion by 2030. Growth is expected to be supported by expanding production capacity from 1,500 units per month at the beginning of the year to over 5,000 per month by year-end. The stock rose about 4%, completing a correction of over 15% from the low in late August, when it fell below 200 shekels. However, the stock is still 47% below its peak this year, following a sharp decline due to weakening sentiment toward defense stocks, concerns about growth rates and profit margins, and sell-offs totaling about 1.1 billion shekels by stakeholders and founders. Next Vision was listed in June 2021 at a valuation of about 407 million shekels and has since surged over 4,000%. Despite the decline, it still trades at a price-to-earnings multiple of about 43.