One pundit following the inventory feels Kratos might see sturdy progress in sure elements of its enterprise.
Kratos Protection & Safety Options (KTOS 0.74%) buyers is likely to be tempted to have a good time the approaching weekend early, following an analyst’s suggestion improve for his or her inventory. That sentiment-boosting occasion occurred Thursday earlier than market open, and helped the corporate’s shares commerce in constructive territory.
They closed that session 0.5% increased, barely exceeding the rise of the S&P 500 index.
BTIG is now massive on the corporate
The individual upping his suggestion on Kratos was BTIG’s Andre Madrid, who has set a worth goal of $80 per share for the protection inventory.
Picture supply: Getty Photographs.
In line with reviews, Madrid feels that a number of developments have swung within the protection firm’s favor just lately. A significant one he cited is the Marine Corps’s MUX TACAIR unmanned aerial programs (UAS) program, for which the corporate was downselected. This portends fairly properly for Kratos’s normal UAS enterprise.
The analyst additionally waxed bullish concerning the firm’s potential in different product segments, singling out classes akin to hypersonics and microwave applied sciences.
Be a part of the membership
Madrid’s improve is a part of a development amongst analysts, various of whom have develop into extra constructive about Kratos’s future recently. Earlier this week, a clutch of them raised their worth targets on the shares, whereas one (Cannacord Genuity’s Austin Moeller) initiated protection with a purchase ranking.
This was to be anticipated, to a level, as the corporate scored a double beat on its second-quarter earnings, which it reported final week. It notably impressed the market with a 17% year-over-year enhance in gross sales, to not point out topping the common analyst income estimate with full-year steerage of $1.3 billion.
Eric Volkman has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
