Kratos Defense & Security price target raised to $65 from $50 at RBC Capital

Published 08/08/2025, 14:48
Kratos Defense & Security price target raised to $65 from $50 at RBC Capital

Investing.com - RBC Capital raised its price target on Kratos Defense & Security (NASDAQ:KTOS) to $65.00 from $50.00 on Friday, while maintaining an Outperform rating on the stock.

The defense contractor reported second-quarter adjusted earnings per share of $0.11, exceeding the consensus estimate of $0.10. Revenue reached $352 million, representing approximately 15% organic growth and surpassing consensus expectations by 15%. According to InvestingPro data, the company maintains strong financial health with a current ratio of 2.84, indicating solid liquidity to meet short-term obligations.

Kratos saw significant growth across its business segments, with Defense Rocket Systems revenue increasing approximately 117% year-over-year and C5ISR (Command, Control, Communications, Computers, Combat Systems, Intelligence, Surveillance and Reconnaissance) growing about 25% organically compared to the same period last year.

The company raised its 2025 organic revenue growth guidance to approximately 12%, up from its previous forecast of approximately 10% growth.

RBC Capital cited the strong top-line outlook as support for maintaining an elevated multiple on the stock, leading to the higher price target while keeping its Outperform rating.

In other recent news, Kratos Defense & Security Solutions reported its financial results for the second quarter of 2025, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $0.11, surpassing the forecasted $0.09. Kratos Defense also reported revenue of $351.5 million, which was higher than the anticipated $307.1 million. These results indicate a strong financial performance for the quarter. Despite this, the company’s stock experienced a slight decline in premarket trading, reflecting nuanced investor sentiment. The earnings and revenue figures are crucial for investors, as they provide insight into the company’s financial health and operational success. The recent developments underscore Kratos Defense’s ability to outperform market expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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