Kratos shares rebound on Monday, company awarded $50 million product and hardware contract

Kratos Defense & Security Solutions Inc (KTOS) said on Monday that its Command, Control, Communications, Computing, Combat, Intelligence, Surveillance and Reconnaissance (C5ISR) Modular Systems Division had been awarded a $50 million indefinite delivery, indefinite quantity (IDIQ) product and hardware contract, in support of a national security related program.

Kratos shares closed higher for the fourth time in the past ten trading sessions on NASDAQ on Monday. The stock went up 0.84% ($0.15) to $17.92, after touching an intraday high at $18.15, or a price level not seen since December 26th ($18.15).

Shares of Kratos Defense & Security Solutions Inc have risen 27.18% so far this year, following another 33.05% gain in 2018.

“The recapitalization of strategic weapon systems to address peer and near peer threats of the United States and its allies is providing a number of large, new program opportunities to our business, including in the Missile System, Missile Defense, Radar, Space, Unmanned and Combat System areas, and we are proud to address mission critical national security priority areas,” Tom Mills, President of Kratos C5ISR Modular Systems Division, said in a statement.

Kratos’ C5ISR Modular Systems Division is a key provider of products, hardware, systems and subsystems in support of unmanned aerial vehicle, high powered directed energy, missile, missile defense, radar, surface combatant and other combat and weapon systems and programs.

Analyst stock price forecast and recommendation

According to CNN Money, the 10 analysts, offering 12-month forecasts regarding Kratos Defense & Security Solutions Inc’s stock price, have a median target of $24.00, with a high estimate of $27.00 and a low estimate of $19.00. The median estimate represents a 33.93% upside compared to the closing price of $17.92 on December 30th.

The same media also reported that at least 7 out of 10 surveyed investment analysts had rated Kratos Defense & Security Solutions Inc’s stock as “Buy”, while 2 – as “Hold”.