Josh Sullivan, an analyst from Benchmark Co., maintained the Buy rating on Kratos Defense (KTOS – Research Report). The associated price target remains the same with $38.00.
Josh Sullivan has given his Buy rating due to a combination of factors that highlight Kratos Defense’s unique position in the market. One significant aspect is Kratos’ lack of exposure to China, both in terms of exports and supply chain, which shields it from geopolitical tensions affecting other companies. Additionally, the approval of the FY25 Continuing Resolution ahead of expectations provides a stable financial outlook for defense budgets, benefiting Kratos’ operations.
Another factor contributing to the Buy rating is the availability of highly skilled personnel following the F-47 fighter jet award to Boeing. This talent pool, previously engaged in high-profile projects, presents an opportunity for Kratos to enhance its capabilities in drones, hypersonics, and space contracts. Furthermore, Kratos’ strategic international partnerships, particularly with countries like Israel, further solidify its market position, making it less susceptible to market volatility.