BTIG Maintains Buy Rating on Kratos Defense & Security Solutions, Lowers Price Target
BTIG has reaffirmed its 'Buy' rating on Kratos Defense & Security Solutions while adjusting its price target downward from $104 to $65.
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B. Riley has lowered its price target for Kratos Defense & Security Solutions, Inc. while maintaining a Buy rating on the stock.
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BTIG has reaffirmed its 'Buy' rating on Kratos Defense & Security Solutions while adjusting its price target downward from $104 to $65.
Kratos Defense & Security Solutions reported 36% revenue growth to $471.8 million in Q3 with record backlog of $2.65 billion, driven by strong defense demand. However, the company posted a GAAP operating loss of $4.9 million and negative free cash flow of $29.4 million in the quarter, with expectations to consume $110-120 million in cash for the full year. Heavy investment spending is expected to continue pressuring free cash flow through 2027.
Kratos Defense & Security Solutions, Inc. announced its Q3 2026 financial results, reporting $471.8 million in revenue and an adjusted EPS of $0.24, exceeding analyst expectations.
Zacks highlights four defense stocks expected to outperform earnings expectations in Q3 2026, driven by rising global defense spending, geopolitical tensions, and military modernization programs. The aerospace sector's quarterly earnings are projected to rise 186.2% on 13.1% higher revenues. The four stocks identified—Kratos Defense & Security Solutions, Heico, Curtiss-Wright, and AeroVironment—combine positive Earnings ESP with strong Zacks Rank ratings, positioning them to beat estimates.
KeyBanc analyst Michael Leshock maintained a 'Buy' rating on Kratos Defense & Security Solutions while lowering the price target to $75 from $130.