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Why did Kratos' stocks rise today?

SourceMotley_fool

Aug 14 2025 23:25

Key points

  • An analyst upgraded his recommendation on the stock from neutral to buy.
  • He was particularly impressed with the company's recent success in a Marine Corps program.
  • 10 actions we like more than Kratos Defense & Security Solutions ›

Kratos Defense & Security Solutions (NASDAQ: KTOS) could tempt its investors to celebrate the weekend early, following an analyst's upgrade recommendation. This boost to sentiment occurred on Thursday before the market opened and helped the company's shares trade in positive territory.

They closed the session 0.5% higher, slightly surpassing the increase of the S&P 500 index.

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BTIG bets big on the company

The one who upgraded their recommendation on Kratos was Andre Madrid from BTIG, setting a target price of $80 per share for this defense company.

According to reports, Madrid believes that several recent events have favored the company. One important event it cited is the MUX TACAIR program for unmanned aerial systems (UAS) of the Marine Corps, for which the company was shortlisted. This bodes very well for Kratos' overall UAS business.

The analyst also expressed optimism about the company's potential in other product segments, highlighting categories such as hypersonic and microwave technologies.

Joining the trend

The improvement in Madrid is part of a trend among analysts, many of whom have become more optimistic about the future of Kratos lately. Earlier this week, several raised their price targets, while one (Austin Moeller of Cannacord Genuity) initiated coverage with a buy rating.

This was to be expected, to some extent, as the company exceeded expectations in its second-quarter results reported last week. It particularly impressed the market with a 17% increase in sales compared to the previous year, not to mention that it surpassed the average revenue estimate of analysts with an annual guidance of $1.3 billion.

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Eric Volkman has no position in any of the mentioned stocks. Motley Fool has no position in any of the mentioned stocks. Motley Fool has a disclosure policy.

Disclaimer: For informational purposes only. Past performance does not indicate future results.

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