JMP Securities has assigned a “Market Outperform” rating on the shares of Kratos Defense & Security Solutions Inc (NASDAQ: KTOS), as the firm cited growth potential amid increasing defense spending on unmanned systems.
JMP Securities has also assigned a price target of $27 per share on Kratos’ stock, based on an estimated enterprise value that is 29.4 times EBITDA for 2025 calendar year.
“Kratos operates numerous business segments we consider non-cyclical or less likely to be negatively impacted by periods of low geopolitical conflict or op-tempo,” Trevor Walsh, analyst at JMP Securities wrote in a client note.
“When global unrest is on the rise as current geopolitical conflicts indicate, we believe Kratos is also well positioned to capture a growing wallet share.”
Stock Performance
The shares of Kratos Defense & Security Solutions Inc (KTOS) closed 1.21% ($0.26) higher at $21.80 on Nasdaq on Tuesday, as they extended the gain from the previous market session.
The company’s total market cap now stands at $3.272 billion.
The shares of Kratos Defense & Security Solutions Inc (KTOS) went up 96.61% in 2023, compared with a 43.42% gain for the benchmark index, Nasdaq Composite (IXIC).
The company’s shares have risen 7.44% so far this year.
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