JFB Construction Holdings: Buying Xtend's Drone Business At A Discount

Kurt Christensen910 FollowersFollow5ShareSaveCommentsSummaryJFB Construction is merging with Xtend, an Israeli drone and AI robotics company, to form Xtend AI Robotics and access US public markets.Xtend brings proven battlefield drone technology, a $71M contract backlog, and is expanding US manufacturing for NDAA compliance, positioning for US defense growth.The merger values the combined entity at $1.5B, implying a 62% upside for JFB shareholders based on current market cap and peer revenue multiples.I rate JFB a buy, citing reasonable valuation, strong contract pipeline, and strategic US expansion, with primary risk being merger completion. Igor Barilo/iStock via Getty Images JFB Construction (JFB) is a company that I had never heard of until recently. The company, which is a construction company, showed up on my radar as it is merging with Xtend, a developer of software andThis article was written byKurt Christensen910 FollowersFollowI am a graduate in finance. Currently working in international tax. A personal investor.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in JFB over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.