Freedom Broker raises less-lethal weapons maker Byrna target price by 42%

Freedom Broker has raised its target price by 42% for Byrna Technologies, a small-cap maker of less-lethal weapons. The company beat expectations in its 2024 fourth quarter,  ramped up production, expanded offline sales, and gained endorsements from new influencers — even Lara Trump, the daughter-in-law of the U.S. president, Freedom Broker noted.

Byrna is valued by Freedom Broker at $34 per share, according to a note reviewed by OnInvest. This is 42% higher than its previous target price and 45% above Byrna’s closing price yesterday, March 5.

Despite the target price revision, Freedom Broker’s recommendation remains unchanged at “buy.”

Freedom Broker adjusted its valuation after Byrna reported a 79% year-over-year revenue increase in the fourth quarter of fiscal-year 2024 (ended November 30) to $28 million — about 4% higher than the Freedom Broker forecast.

Earnings per share for the quarter surpassed expectations by 486% and beat Wall Street’s consensus estimate by 720%, at $0.41.

Byrna started over 20 years ago, making products for the military and law enforcement, but struggled to gain traction. The company found success only after shifting focus to retail customers, such as homeowners, hunters, and weapons collectors. Today, Byrna’s products are available through its own online store and Amazon, with celebrity endorsements driving sales. In the fourth quarter, the company secured new influencers, including Lara Trump, the daughter-in-law of U.S. President Donald Trump, Freedom Broker notes.

From January, Byrna has planned to increase production 33% to 24,000 units per month. It also recently announced the launch of its own retail outlets and new partnerships with sporting goods retailers Sportsman’s Warehouse and Zack’s Sporting Goods.

Currently, Byrna’s primary sales channel is online, but Freedom Broker expects physical retail to account for 2-3% of total sales this year. It highlights that if pilot retail projects prove successful, the company may expand further into brick-and-mortar — where conversion rates (the percentage of visitors who make a purchase) reach 80%, versus about 1% online.

Another factor behind Freedom Broker’s higher valuation is Byrna’s strong financial position: the company has no debt and held $25.7 million in cash and liquid securities at year-end, according to the Freedom Broker report.

Four analysts cover Byrna; all of them rate it a “buy,” according to MarketWatch. Their average target price is $35.63 per share, implying upside of 52% versus the last closing price.