Since the United States Navy started clearing mines in the Strait of Hormuz , St. John’s-based Kraken Robotics Inc. (PNG:TSX) and Covelya Group Ltd., which Kraken announced in March it was buying — have logged orders worth approximately $40 million over a month and a half, Benoit Poirier, an analyst at Desjardins Capital Markets, said in a note on May 28. “We view the opportunity as one of the most compelling in our coverage,” Poirier said of the prospects for shares of the marine technology company. He has a price target of $14 for Kraken, well above the 12-month price target of $10.80 based on the calls of five analysts, according to Bloomberg. Shares closed Friday at $7.44. As defence spending ramps up in Canada and around the world, Poirier said “all eyes” will be on Kraken when it closes its deal to purchase subsea tech company Covelya, especially as the latter’s exposure to the defence sector is expected to grow. The shares, if projecting today’s performance to 2028, are trading at an “unjustified” 60 per cent discount to drone and defence peers, Poirier said. ATB Cormark Capital Markets also has Kraken on its radar and said in a note that the company is likely in contention to be named “as a maritime robotics champion” by Ottawa’s Defence Advisory Forum, though it could face competition for business from Kongsberg Maritime AS (KMAR:NO) of Norway, which manufactures an underwater autonomous vehicle, parts of which could be built in British Columbia. ATB has a price target on Kraken of $6.50.