KTOS
The setup
Kratos Defense & Security Solutions got a little Wall Street caffeine Monday after B. Riley Securities reiterated a Buy rating and slapped a $128 price target on the stock. That’s a lot of upside from a name that was already having a decent morning.
Why the analyst is excited
The real headline here isn’t just the target. It’s the comparison to Anduril, the private defense company everyone seems to talk about like it’s the cool kid at the defense contractor lunch table.
B. Riley says KTOS trades at just 4.3x FY26 EV/Sales, while Anduril’s implied valuation is above 23x sales based on its latest funding round. Translation: Kratos may not be the flashiest name in the room, but the analyst thinks it’s the better bargain bin pick.
What investors will watch next
The call also points to a few other catalysts that matter more than the stock-chart theater:
- a $14.3 billion bid and proposal pipeline
- capacity expansion in hypersonics and unmanned systems
- the new Prometheus Energetics joint venture with RAFAEL
- upcoming Q2 earnings on August 4th
That last one matters because earnings are where the story either gets a sequel or gets awkward fast.
Big picture
Kratos is still trading below its key moving averages, so this isn’t a clean victory lap. But when analysts start arguing a stock is cheap relative to a buzzy private rival, that tends to keep the ticker in the conversation. And in defense, conversation can turn into contracts — which is kind of the whole game.