An analyst at Truist, Michael Ciarmoli, has increased the price target for Kratos Defense (KTOS, Financial) to $38 from the prior $32, maintaining a Buy rating on the stock. This adjustment comes as part of a broader analysis leading up to the first-quarter results for the Aerospace & Defense industry.
As the earnings season approaches, investors face a landscape filled with uncertainties. Several unknown factors, including tariff implications and recession fears, are poised to affect this cyclically-sensitive sector. These concerns might lead to a lack of clarity from management teams regarding projections for 2025.
Despite the potential challenges, Truist suggests that investors could find more reliable prospects by focusing on the defense sector. This recommendation is supported by several positive developments in defense spending, offering a potentially stable and predictable investment environment against the current backdrop.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Kratos Defense & Security Solutions Inc (KTOS, Financial) is $34.10 with a high estimate of $40.00 and a low estimate of $22.00. The average target implies an upside of 2.49% from the current price of $33.27. More detailed estimate data can be found on the Kratos Defense & Security Solutions Inc (KTOS) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Kratos Defense & Security Solutions Inc's (KTOS, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Kratos Defense & Security Solutions Inc (KTOS, Financial) in one year is $19.03, suggesting a downside of 42.8% from the current price of $33.27. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Kratos Defense & Security Solutions Inc (KTOS) Summary page.
