One pundit following the inventory feels Kratos may see robust progress in sure components of its enterprise.
Kratos Protection & Safety Options (KTOS 0.74%) traders is perhaps tempted to rejoice the approaching weekend early, following an analyst’s advice 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% greater, barely exceeding the rise of the S&P 500 index.
BTIG is now huge on the corporate
The particular person upping his advice on Kratos was BTIG’s Andre Madrid, who has set a worth goal of $80 per share for the protection inventory.
Picture supply: Getty Pictures.
In keeping with stories, Madrid feels that a number of developments have swung within the protection firm’s favor lately. A serious one he cited is the Marine Corps’s MUX TACAIR unmanned aerial methods (UAS) program, for which the corporate was downselected. This portends fairly nicely for Kratos’s basic 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, quite a lot of of whom have grow to be extra constructive about Kratos’s future these days. 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 improve 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.
