Diamond Member Pelican Press 0 Posted April 26, 2024 Diamond Member Share Posted April 26, 2024 This little-known drone stock is poised to rally more than 56%, Raymond James says Kratos Defense & Security Solutions is seeing its business thrive amid accelerating defense spending stemming from global conflicts, according to Raymond James. Analyst Brian Gesuale upgraded shares from outperform to a strong buy rating. He also raised his price target by $7, or 35%, to $27, suggesting the stock could climb 56% from Thursday’s close. Kratos climbed as much as 2.7% in early trading Friday. Through Thursday, shares have fallen roughly 15% year-to-date, partly because investors wanted to see faster drone production runs, the analyst said. “Kratos provides content on most of the major western air defense systems,” Gesuale said in a report to clients after the market closed Thursday. “While the consumables in ******* and the recently passed Supplemental Security Aid package [to Ukraine, ******* and Taiwan] will benefit KTOS, we believe we are in the very early stages of a generational upgrade to Air Defense systems globally.” This upgrade cycle, the analyst said, is fueled by advances in munitions, defensive technology, counter-offensive innovation, the potential risk of expanding global conflict zones and uncertainty surrounding the U.S.-NATO alliance in this year’s U.S. presidential election cycle. Gesuale noted that the adoption of drone and “loitering” munitions has accelerated given the success of Switchblade and other technologies in the field, and that the *******-****** war has led to “massive strides” in air defense technology, seen in the success of ******** systems such as Iron Dome, Davids Sling and Arrow Systems. Kratos will benefit from the Congress’s $26 billion bill to send additional wartime assistance to *******, passed late Tuesday, which Gesuale said supports the restocking of Iron Dome, Arrow, Davids Sling and other air defense programs. At the same time, NATO’s orders for Multiple Air Defense Systems, $11 billion of which require Kratos materials over several years, could also boost the stock, he added. KTOS YTD mountain Kratos shares over the past year. This is the hidden content, please Sign In or Sign Up Investment strategy,Stock markets,*******,Kratos Defense and Security Solutions Inc,Government and politics,business news #littleknown #drone #stock #poised #rally #Raymond #James This is the hidden content, please Sign In or Sign Up 0 Quote Link to comment https://hopzone.eu/forums/topic/22428-this-little-known-drone-stock-is-poised-to-rally-more-than-56-raymond-james-says/ Share on other sites More sharing options...
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