Defense firm Kratos climbs after BTIG turns bullish

Kratos Defense & Security Solutions

14/08/2025 15:09

** Shares of Kratos Defense & Security Solutions KTOS.O up 5.2% at $72.34 after BTIG upgrades to 'buy' from 'neutral'

    ** Brokerage sets PT at $80, a tie for Street-high, per LSEG

    ** KTOS's affordable technology, ready now solutions, and exposure to key areas of priority make co a "prime beneficiary of growing defense budgets globally," BTIG wrote in note

    ** BTIG said it has conviction KTOS could see significant growth in its Unmanned Systems business (KUS) in the coming year

    ** Strong growth and margin expansion expected in the out years, BTIG said, as co's recent contract wins ramp up and dilutive contracts are renewed at higher price points

      ** San Diego-based KTOS' stock got a boost last month after U.S. Defense Secretary Pete Hegseth ordered sweeping new directives to fast-track drone production and deployment

    ** Now, 12 of 14 brokerages rate KTOS "strong buy" or "buy" and 2 have "hold"; m
    edian PT of $70 up from $52 a month ago and from $39 on Jun 14

      ** With move on the session, stock up ~173% YTD

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))