Kratos Defense & Security Solutions announced that its C5ISR (Command, Control, Communications, Computing, Combat, Intelligence, Surveillance and Reconnaissance) business has received an $10.5 million order from US national security-related customers. Shares rose 4% in Thursday’s pre-market trading.
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Tom Mills, president of Kratos’ (KTOS) C5ISR division, said, “Our Division and all of Kratos are focused on supporting our customers and addressing the ongoing recapitalization of strategic weapon and defensive C5ISR and other systems.”
Earlier in October, Kratos reported better-than-expected 3Q results. Its EPS of $0.14 per share beat analysts’ estimates of $0.09 per share. Meanwhile, its revenues of $202 million exceeded the Street’s estimates of $199.5 million. (See KTOS stock analysis on TipRanks).
On Dec. 9, Noble Financial analyst Joe Gomes raised the stock’s price target to $26 (6.4% downside potential) from $23 and maintained a Buy rating. Gomes said, “Kratos is well positioned to capitalize on the Department of Defense’s recapitalization of strategic weapons to address peer and near-peer threats.”
From the rest of the Street, the stock scores a cautiously optimistic analyst consensus of a Moderate Buy. The average analyst price target stands at $27, which implies downside potential of about 2.8% to current levels. Shares have gained 54.2% year-to-date.
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