Kratos Defense & Security (KTOS) PT Raised to $54 at Stifel

Stifel analyst Jonathan Siegmann raised the price target on Kratos Defense & Security (NASDAQ: KTOS) to $54.00 (from $52.00) while maintaining a Buy rating.

The analyst commented, “We are publishing an updated model following KTOS's $500m equity raise last week. As noted in our earlier flash note (here), we are excited about the optionality the new incremental cash provides the company. We look forward to their Q2 earnings call when we might hear new insights on where management is intending to direct this new cash. We reaffirm our Buy recommendation and raise our PT to $54.To highlight one area where KTOS is investing, we revisit their Prometheus solid rocket motor JV. The establishment of this JV (a 50/50 venture with Rafeal Advanced Defense Systems) was announced earlier this year prior to the surge of Rafael interceptor missiles used in the Iran war last month. We believe the prospects of KTOS's partnership with Rafeal were enhanced by the impressive effectiveness of the Iron Dome system and anticipate Prometheus will be a significant earnings contributor in the future.”

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