Lake Street Capital Markets Reiterates Buy Rating for Safe Pro Group with $9 Price Target, Citing Ukraine Demining and Red Cat Collaboration Opportunities

Lake Street Capital Markets has reiterated its Buy rating and $9 price target for Safe Pro Group, citing accelerating revenue momentum through 2026 and 2027 driven by opportunities in Ukraine's demining market and collaboration with Red Cat Holdings. Analyst Max Michaelis highlighted in a January 5, 2026 research report that these opportunities together represent multihundred-million-dollar potential for the AI security and defense technology company.

The significance of this analysis lies in identifying specific, quantifiable market opportunities that could transform Safe Pro Group's financial trajectory. Michaelis estimates the Ukrainian landmine detection market represents approximately $2.5 billion in total revenue opportunity based on roughly 14 million hectares of mined land and an estimated $175 per hectare pricing model. This market size estimation provides investors with concrete data points to assess the company's potential scale in addressing one of the world's most pressing humanitarian challenges.

Safe Pro's patented AI platform, capable of detecting more than 150 types of explosive threats from drone imagery, is viewed as significantly faster and safer than manual demining methods. The technology could translate into large-scale contracts through partnerships with the Ukrainian government, the United Nations Development Program, and Norwegian People's Aid. For more information on Safe Pro Group Inc., please visit https://safeprogroup.com/.

The strategic collaboration with Red Cat to integrate Safe Pro's AI into drone platforms used in U.S. Army programs represents another major opportunity, with Michaelis estimating potential revenue of $130 million to $175 million. This military application demonstrates how the company's technology can transition from humanitarian uses to defense applications, creating multiple revenue streams from the same core AI capabilities.

Lake Street expects margin expansion as revenue shifts toward higher-margin AI software and cloud-based services, projecting consolidated gross margin of 57.5% in 2026 and 70% in 2027. The firm anticipates AEBITDA breakeven in 2027, indicating a path to profitability as the company scales its operations. This financial projection matters because it provides a timeline for when investors might expect the company to transition from growth investment to sustainable profitability.

The broader implications extend beyond financial metrics to global security and humanitarian efforts. Safe Pro's technology addresses critical needs in conflict zones while simultaneously serving commercial and defense markets. The company's positioning at the intersection of these sectors creates unique growth opportunities but also demonstrates how AI technology can be applied to solve complex real-world problems. The latest news and updates relating to SPAI are available in the company's newsroom at http://ibn.fm/SPAI.

For institutional investors, the Lake Street analysis provides detailed quantification of market opportunities that had previously been discussed in more general terms. The specific revenue projections for both Ukraine demining and Red Cat collaboration give investors measurable targets to track the company's execution against. This level of detail in market analysis helps reduce uncertainty around the company's growth potential and provides clearer benchmarks for evaluating performance.

The technology's potential impact extends to operational safety in conflict zones, where traditional demining methods put human lives at risk. By enabling drone-based detection of explosive threats, Safe Pro's platform could significantly reduce casualties among demining personnel while accelerating clearance operations. This dual benefit of commercial opportunity and humanitarian impact represents a compelling value proposition that distinguishes the company from purely commercial technology providers.