Shares of drone technology company Unusual Machines Inc. (UMAC) were in focus after an analyst said the stock could more than double from current levels.

According to TheFly, HC Wainwright initiated coverage of Unusual Machines with a ‘Buy’ rating and a price target of $42, implying an upside potential of 110% from current levels.

were up nearly 8% in Wednesday’s opening trade. UMAC was among the top trending tickers on Stocktwits at the time of writing.

Why HC Wainwright Is Bullish On UMAC

HC Wainwright said Unusual Machines is well positioned to benefit from growing demand for domestically manufactured unmanned aircraft components.

The firm believes the company's domestic manufacturing footprint could become an increasingly important competitive advantage as government agencies and commercial buyers prioritize U.S.-sourced drone technology.

Looking ahead, HC Wainwright sees several near-term catalysts that could support the stock, including discussions around a potential U.S. government investment in the company.

The firm said those developments, if realized, could strengthen Unusual Machines' growth outlook and reinforce its position in the domestic drone supply chain.

UMAC Could Get US Government Backing

One of the catalysts highlighted by HC Wainwright is the U.S. government’s backing. According to a report by The Wall Street Journal in May this year, the Trump administration was said to be exploring funding agreements with several drone companies, including Unusual Machines.

The report stated that this was a part of a broader effort to boost domestic manufacturing and reduce the cost of small unmanned aircraft systems. The discussions could involve a mix of debt and equity financing, though negotiations were still ongoing and no final agreements had been reached.

The report added that the initiative aligns with the Pentagon's push to rapidly expand U.S. drone production under its Drone Dominance program, which aims to build a large arsenal of low-cost drones. A Defense Department official said that any final funding decisions would be announced formally at a later date.

Retail sentiment on Stocktwits around Unusual Machines trended in the ‘extremely bullish’ territory, with message volumes at ‘high’ levels at the time of writing.

is up 58% year-to-date and 79% over the past 12 months. The Defiance Drone and Modern Warfare ETF (JEDI) is up 3% over the past 12 months, while the State Street SPDR S&P Kensho New Economies Composite ETF (KOMP) is up 23%.