Kratos Defense price target raised to $27 from $25 at Truist

Truist raised the firm’s price target on Kratos Defense to $27 from $25 and keeps a Buy rating on the shares after meeting with its management team. The firm maintains its view that Kratos represents one of the “more compelling organic SMID cap growth stories” in the defense sector and believes that the upside to the management’s 8%-12% long-term revenue growth model will materialize once the company secures unmanned tactical drone orders, the analyst tells investors in a research note. The company’s nascent but rapidly growing position in the hypersonics, turbofan, and turbojet engine markets should also help increase its penetration rate within the missile and small drone market, Truist added.