Electro Optic Systems Holdings' stock soared 5.24% during intraday trading on Friday, following positive analyst coverage and successful capital raising activities.
Montega maintained a buy rating on the company while adjusting its 12-month price target to AUD 16 from AUD 17. The revision came after Electro Optic Systems completed a fully subscribed institutional equity raise of AUD 150 million at AUD 8 per share, and announced plans for an additional AUD 40 million strategic placement tied to a Calidus-linked investor.
The capital infusion is expected to strengthen the company's balance sheet, support bank guarantee requirements for large defense contracts, and help scale operations into larger international programs, particularly benefiting its positioning in the Gulf region.