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Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (KTOS) stock has reached a new 52-week high, touching $30.42 amidst a robust defense market. This milestone reflects a significant surge in the company's stock value, with an impressive 1-year change of 55.96%. Investors have shown increased confidence in Kratos, a company known for its advanced drone technology and national security solutions, as it capitalizes on growing defense budgets and heightened demand for unmanned systems. With revenue growth of 11.3% and analysts setting price targets up to $38, InvestingPro analysis suggests the stock is currently trading above its Fair Value. The stock's performance over the past year underscores the firm's expanding footprint in the defense sector and its potential for continued growth in an era of heightened global security challenges. The company's market capitalization now stands at $4.5 billion, with analysts forecasting continued profitability this year. Discover more insights and 12 additional ProTips with InvestingPro's comprehensive research report.
In other recent news, defense contractor Kratos Defense & Security has been making significant strides with a series of remarkable contract wins. The company was upgraded by B.Riley from Neutral to Buy, with a new price target set at $35, up from the previous $26. This upgrade follows the largest contract win in Kratos's history—a $1.45 billion OTA contract for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0, a project aimed at enhancing hypersonic flight-testing for the Department of Defense.
Additionally, Kratos secured a $6.5 million contract from the Defense Advanced Research Projects Agency (DARPA) for hypersonic flight testing. The company is also set to develop a supersonic engine in collaboration with GE Additive and StandardAero, a development fully funded by Boom Supersonic.
Research firms BTIG, Jefferies, and Raymond (NS:RYMD) James have maintained their respective Neutral, Hold, and Strong Buy ratings on Kratos. In terms of financials, the company reported robust third-quarter revenues in 2024, reaching $275.9 million, marking an 8.7% organic growth in unmanned systems and surpassing estimates. The company is also projecting a 10% year-over-year revenue growth for 2025. These recent developments highlight Kratos' growth trajectory and capability to secure major contracts within the defense sector.
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