Kratos shares close lower on Thursday, company awarded $11.5 million contract for space radio monitoring system

Kratos Defense & Security Solutions Inc (KTOS) said on Thursday that it had been awarded an $11.5 million contract related to the establishment of an advanced space radio monitoring system for a government client.

Kratos shares closed lower for the sixth time in the past ten trading sessions on NASDAQ on Thursday. The stock went down 2.72% ($0.44) to $15.75, after touching an intraday low at $15.24, or a price level not seen since February 25th ($14.74).

Shares of Kratos Defense & Security Solutions Inc have retreated 12.55% so far this year, following a 27.82% gain in 2019.

As part of the project, Kratos will be responsible for the turnkey design, installation and integration of the advanced space radio monitoring system along with the core satellite technology and related hardware and software. The system has a fixed site and mobile unit so that it could monitor satellite downlinks, the company said.

“The dynamic increase in capacity and capabilities of satellites today is increasing the need for advanced space monitoring systems to assure the satellite spectrum,” Phil Carrai, President of Kratos’ Space, Training and Cybersecurity Division, said in a press release.

“With our extensive capabilities and range of advanced products that span virtually the full range of ground operations, from networks to RF management to domain awareness, Kratos is uniquely positioned to help government agencies solve the challenges of monitoring, managing, delivering and protecting this vital national resource,” Carrai added.

Analyst stock price forecast and recommendation

According to CNN Money, the 9 analysts, offering 12-month forecasts regarding Kratos Defense & Security Solutions Inc’s stock price, have a median target of $22.00, with a high estimate of $25.00 and a low estimate of $17.00. The median estimate represents a 39.68% upside compared to the closing price of $15.75 on February 27th.

The same media also reported that at least 7 out of 9 surveyed investment analysts had rated Kratos Defense & Security Solutions Inc’s stock as “Buy”, while 1 – as “Hold”.