Overview
- Kratos shares rose about 7% to 8% Monday after Jefferies raised the stock to Buy and set an $85 target that implies roughly 26% upside.
- Jefferies forecasts revenue of $1.7 billion in 2026 and $2.1 billion in 2027, driven by demand for unmanned systems and missile programs.
- The firm cites a roughly $14 billion opportunity that includes Prometheus and hypersonics, with related test work such as Rocket Lab’s $190 million MACH‑TB 2.0 flights under a Kratos‑led effort.
- Kratos is scaling production of its Valkyrie autonomous combat aircraft for the U.S. Marine Corps, the U.S. Air Force and allied customers, which Jefferies expects will help margins.
- Recent awards and partnerships span missile propulsion and space networks, including up to $49.2 million for Oriole rocket motors and nozzle kits and a March selection by SKY Perfect JSAT to build a 5G satellite ground system.