Piper Sandler Initiates Unusual Machines at Overweight, Sees 46% Upside for Drone Parts Maker — BigGo Finance

Piper Sandler initiated coverage of drone maker Unusual Machines (UMAC) with an Overweight rating and a $38 price target. The firm cites FCC restrictions on Chinese-made drones and a $2.1 million defense purchase order, plus component supply opportunities. It flags execution risk as UMAC plans to scale motor capacity from ~15,000 to 100,000 units/month. Q2 revenue rose to $16.72M.

US drone component makers rose after President Trump signed a Section 232 proclamation imposing tariffs up to 100% on certain imported drones and parts, with implementation dates in 2026-2027. Unusual Machines shares jumped as much as 22%. Article cites supply-chain analysis that key magnets and lithium-ion cells are still largely China-made, per NextWeb and other sources.

President Trump signed a proclamation imposing tiered tariffs on imported drones and unmanned aircraft parts, citing national security. Shares of Unusual Machines (NYSE:UMAC) rose 22% to $33.24, Red Cat Holdings (NASDAQ:RCAT) gained 8% to $11.02, and Ondas (NASDAQ:ONDS) rose 4% to $9.27. AeroVironment (AVAV) and Kratos (KTOS) rose 1% to 2%. Tariffs take effect in 21 and 180 days.

Unusual Machines (UMAC) shares rose sharply after President Trump announced new tariffs on imported drones and drone parts. The Wall Street Journal said China-bound imports would face higher levies than allied nations, with some categories like thermal-imaging drones potentially at 100%. Tariffs start in three weeks and fully implement in six months, which could boost demand for U.S.-made drone components.

Investing.com reports Unusual Machines (UMAC) jumped 24.6% to $33.95, setting an intraday high near $34.90, as options activity turned bullish. Call volume nearly tripled puts (14,465 vs 5,171) with heavy trading in Aug. 21 $35 and $40 calls. The move is linked to 100% drone tariffs, Q2 revenue up 687% to $16.7M, and analyst target raises to $38 and $30.

Premarket shares rose for drone makers AeroVironment and Aevex and for Unusual Machines after the Trump administration signed a proclamation imposing tariffs up to 100% on imported drones and components to decouple supply chains from China. Group 3 drones face the highest rate; smaller drones and parts face 25%, with some partner rates lower. Tariffs take effect 21 days (drones) and 180 days (less sensitive components), per the White House.