Kratos Defense & Security Solutions (KTOS) Upgraded to Strong Buy by Raymond James Analyst

Raymond James's Brian Gesuale upgraded their rating on Kratos Defense & Security Solutions (NASDAQ: KTOS) from Buy to Strong Buy on 2024/04/26. The analyst also raised their price target by 35% from $20 to $27.

According to Gesuale, the demand for drones and air defense has been on the rise due to ongoing and escalating wars globally. The adoption of drones and loitering munitions has exceeded expectations and expanded beyond theaters of operations. Gesuale believes that this trend indicates the beginning of a generational upgrade to air defense systems worldwide.

Currently, 80% of top-rated analysts are recommending KTOS as a Strong Buy or Buy, while 20% view it as a Hold. No analysts are recommending or strongly recommending selling the stock.

In terms of performance, KTOS's stock price has experienced a 7.1% decline since its last quarterly report on December 31, 2023. However, on a year-over-year basis, the stock has seen a significant increase of 49.9%. During this period, KTOS has outperformed the S&P 500, which has grown by 25.7%.

Brian Gesuale, ranked in the top 7% of Wall Street analysts by WallStreetZen, specializes in the Technology, Industrials, and Consumer Cyclical sectors. With an average return of 12.6% and a 56.5% win rate, Gesuale's expertise lends credibility to the upgraded rating and price target for KTOS.

Kratos Defense & Security Solutions, Inc. operates as a government contractor for the U.S. Department of Defense. The company is divided into two segments: Kratos Government Solutions and Unmanned Systems. The former offers various defense-related products and services, including microwave electronic products, space and satellite communications, training and cybersecurity/warfare, and more. The latter segment focuses on unmanned aerial, ground, and seaborne systems. Kratos serves both national security agencies and international government and commercial customers.

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