B.Riley FBR analyst Mike Crawford maintained a Buy rating on Kratos Defense (KTOS) today and set a price target of $26. The company’s shares closed yesterday at $24.65, close to its 52-week high of $25.08.
Crawford noted:
“Buy-rated Kratos (KTOS, $26 PT) reported 2Q19 results, beating with $188M revenue and $19.2M EBITDA, vs. our $180M/$17.5M EBITDA estimates and a lower consensus $179M/ $16.7M. With two multi-hundred million dollar hypersonics competitions pushed to the right, combined with a $5M descoping of a Saudi training engagement and a mix shift from hardware toward software in KTOS’ space C4ISR business, the potential upside we were looking for in 2H19 instead becomes a top-end trim of revenue guidance, to $720M-740M for the year, coupled with reiterated $71M-$77M EBITDA, and $14M-$26M FCF including working capital (and after heightened capex for UAV production expansion both at KTOS’ new Oklahoma facility and also at a separate new secured site).”
According to TipRanks.com, Crawford is a 4-star analyst with an average return of 6.8% and a 53.4% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Finjan Holdings, Ducommun Inc, and PCTEL Inc.
Currently, the analyst consensus on Kratos Defense is a Moderate Buy with an average price target of $25.40, which is a 3.0% upside from current levels. In a report issued on July 26, Canaccord Genuity also reiterated a Buy rating on the stock with a $28 price target.
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Kratos Defense’s market cap is currently $2.61B and has a P/E ratio of 1688.36. The company has a Price to Book ratio of 4.72.
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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.
