In a report released today, Mike Crawford from B.Riley FBR maintained a Buy rating on Kratos Defense (NASDAQ: KTOS), with a price target of $16. The company’s shares opened today at $13.12, close to its 52-week high of $13.93.
Crawford commented:
“We also believe it is fair to think that, by 2020, KTOS can be approaching an additional $40M of EBITDA from new tactical combat revenue, particularly if it starts producing drones at around a 100-unit per-year rate at its new aerial system manufacturing facilities, now under construction in Oklahoma City. As such, we are crediting our PT with an additional $40M of expected EBITDA, also supplied at a 14x multiple, culminating in a targeted $1.7B EV and a $16.00/share PT.”
According to TipRanks.com, Crawford is a 4-star analyst with an average return of 8.9% and a 58.5% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Silicon Motion, and Ducommun Inc.
Currently, the analyst consensus on Kratos Defense is a Strong Buy with an average price target of $15.80.
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Based on Kratos Defense’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $7.7 million. In comparison, last year the company had a GAAP net loss of $6.2 million.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KTOS in relation to earlier this year.
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Kratos Defense & Security Solutions, Inc. engages in the provision of technology systems to the U.S. Department of Defense. It operates through the following segments: Kratos Government Solutions, Unmanned Systems, and Public Safety & Security.
