Emcore , a leading provider of advanced inertial navigation and sensing products, represents a unique but underappreciated investment opportunity, particularly within the aerospace and defense sectors as they pivot towards autonomy. The company's gyroscopes, known for their high accuracy, are vital for the navigation systems of various autonomous vehicles, such as unmanned aerial vehicles (UAVs), positioning Emcore to potentially benefit from the growing focus on drone warfare. Despite its potential, EMKR is currently trading at just 44 cents per share and has experienced significant volatility, with a more than 10% decline since the start of the year and a 69% decrease over the past year.
However, analysts remain optimistic about Emcore's financial future, projecting a revenue increase to $101.61 million by the end of 2024 and further growth to $114.66 million in 2025. They have unanimously rated EMKR as a strong buy with a price target of $1.18, suggesting an upside potential of over 168%. Given this context and the anticipated support level, I'm adding a position.