DRONESHIELD LTD's stock price plummeted 5.58% during intraday trading on Friday, following the release of new analyst coverage on the company.

The decline comes after Jefferies began coverage of the counter-drone technology firm with a hold rating and a price target of A$3.70 per share, which is below its previous closing price. While the analyst noted potential benefits from increased NATO defense spending, significant concerns were raised regarding the long-term effectiveness of DroneShield's radio frequency technology in the face of rapidly evolving unmanned aerial systems.

The market's reaction suggests investor apprehension about the company's competitive edge and future growth prospects, as highlighted in the analyst's report.