Kratos gains after Jefferies lifts to 'buy' on growth potential

Kratos Defense & Security Solutions

06/04/2026 11:33

** Shares of defense firm Kratos Defense & Security Solutions' KTOS.O rise nearly 5% to about $71 premarket

** Jefferies upgrades rating to "buy" from "hold", maintains PT at $85

** Brokerage says co has upside to its revenue outlook, led by faster hypersonics growth, expanding missile propulsion opportunities and steady demand for microwave electronics from defense programs

     ** Says KTOS has strong growth potential as rising Valkyrie production, backed by solid demand, could lift revenues and profits well above co's base expectations

** 17 of 21 brokerages rate the stock "buy" or higher, 4 "hold"; their median PT is $121- data compiled by LSEG

** As of last close, stock had fallen 11.3% YTD

 (Reporting by Apratim Sarkar in Bengaluru)

 ((Apratim.Sarkar@thomsonreuters.com))