Kratos Defense stock rating upgraded to Buy at BTIG on MUX TACAIR program

Published 14/08/2025, 12:00
Kratos Defense stock rating upgraded to Buy at BTIG on MUX TACAIR program

Investing.com - BTIG upgraded Kratos Defense & Security (NASDAQ:KTOS) from Neutral to Buy and established a price target of $80.00.

The upgrade follows Kratos’ downselection for the Marine Corps’ MUX TACAIR program, which BTIG analyst Andre Madrid identified as a significant development that addresses previous concerns about the company’s lack of a sizable program of record with steady procurement volumes.

BTIG expressed confidence that Kratos could experience substantial growth in its Unmanned Systems division in the coming year, citing funding earmarked for the program in FY2026 and the broader approximately $8.8 billion unmanned request.

The research firm also highlighted potential upside across other segments of Kratos’ portfolio, specifically noting opportunities in hypersonics, C5ISR/Modular Systems, Microwave Electronics, and Kratos Turbine Technologies.

Kratos Defense & Security, which specializes in unmanned systems, satellite communications, and defense technology solutions, has positioned itself to capitalize on increasing defense spending in autonomous systems.

In other recent news, Kratos Defense & Security Solutions reported impressive second-quarter financial results. The company achieved revenue of $351.5 million, surpassing analyst expectations of $306.5 million by 15%. Kratos also reported organic growth of 15.2%, outperforming the flat growth anticipated by analysts, with adjusted EBITDA reaching $28.3 million compared to forecasts of $24 million. Additionally, the company’s adjusted earnings per share came in at $0.11, exceeding the consensus estimate of $0.10.

In response to these strong earnings, Raymond James doubled its price target for Kratos to $80 from $40, maintaining a Strong Buy rating. Similarly, Noble Capital increased its price target to $75 from $60, and RBC Capital raised its target to $65 from $50, both maintaining an Outperform rating. Beyond financials, Kratos unveiled a redesigned corporate website with a new brand tagline, "Readiness Delivered," highlighting its focus on affordable defense systems. These developments indicate a positive outlook for Kratos Defense & Security Solutions in the eyes of analysts.

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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