Intel stock extends gains after report of possible U.S. government stake
Investing.com - Kratos Defense & Security (NASDAQ:KTOS) stock gained after Raymond (NSE:RYMD) James reiterated its Strong Buy rating and $40.00 price target on the defense contractor.
The firm’s positive stance follows news that the U.S. Marine Corps will transition the XQ-58 Valkyrie low-cost, jet-powered drone into a Program of Record and move it into production.
Alex Lovett, the Deputy Assistant Secretary of Defense for Prototyping and Experimentation, confirmed at Wednesday’s Pentagon Drone Day that "The XQ-58 (Valkyrie) is going into a program of record with the Marine Corps."
The Marines indicated that the landing gear version of the Valkyrie drone would be the most cost-effective solution and could leverage existing infrastructure globally.
Kratos has developed multiple takeoff and recovery systems for the Valkyrie drone, which Raymond James noted would positively impact the company’s future financial forecasts.
In other recent news, Kratos Defense & Security Solutions has made significant strides with its successful demonstration of an end-to-end 5G Non-Terrestrial Network. This advancement integrates Kratos’ OpenSpace software-defined satellite ground system with Intelsat’s network, marking a milestone in extending terrestrial 5G networks. Meanwhile, Noble Capital has raised its price target for Kratos to $60, citing abundant growth opportunities in both defense and commercial sectors. The firm maintains an Outperform rating, highlighting a recent capital raise as a factor enhancing the company’s growth prospects.
Cantor Fitzgerald also reiterated its Overweight rating on Kratos, with a price target of $60. The firm noted potential catalysts such as X-58 scaling and munitions opportunities, suggesting a promising valuation trajectory. Benchmark has increased its price target for Kratos to $50, crediting the company’s strategic alignment with low-cost advanced technology solutions. The recent defense budget boost and a $150 billion Reconciliation Bill are expected to strengthen Kratos’ market position, adding over $1 billion to its programs.
Additionally, Kratos saw an uptick in activity following Defense Secretary Pete Hegseth’s order to ramp up drone production and deployment, as reported by Fox News. This directive allows for the procurement and testing of both 3D-printed and commercially available drone models. These developments collectively underscore Kratos’ positioning for growth in the defense sector.
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