Kratos Defense initiated with an Outperform at Raymond James

Raymond James analyst Brian Gesuale initiated coverage of Kratos Defense with an Outperform rating and $17 price target. Kratos is focused on “rapidly growing” government markets and has a unique commercial business capture model, the analyst tells investors in a research note. The firm believes these characteristics, an attractive valuation, and an improving backdrop position the company for further outperformance and leave the long-term model with an upward bias.