Citizens has maintained its Market Outperform rating on Kratos Defense & Security Solutions (Nasdaq: KTOS) and set a price target of $70. The firm described the company’s recent commentary as broadly positive despite supply chain pressures affecting the wider Defense industry.
According to Citizens, Kratos is less exposed to concerns about defense budgets and contracting staff than some competitors. Its combination of prime contractor and merchant supplier activities distributes contract risk, while its largest programs are linked to national security priorities such as hypersonics.
The company’s diversified model contrasts with defense firms facing more concentrated exposure to contracting challenges. Kratos reported 25.5% revenue growth, reaching $1.52 billion over the last twelve months. Investing.com also noted that the company holds more cash than debt, while analysts expect sales to continue growing this year.
Kratos has recently drawn coverage from several other analysts. Oppenheimer initiated coverage with an Outperform rating and a $50 target, while Macquarie and Rothschild Redburn each began coverage with positive ratings and $70 targets. Citizens previously reduced its target from $105 to $70, citing election and budget uncertainty affecting the defense sector.
Sources: Investing.com News.