Kratos Defense price target raised to $112 from $70 at Stifel

Stifel raised the firm’s price target on Kratos Defense (KTOS) to $112 from $70 and keeps a Buy rating on the shares. The firm is raising its price target by “an admittedly uncomfortable 60%,” stating that it thinks “the easy recommendation is to tell you everything is priced in or this is just a retail bubble, but we don’t believe that.” With two new multi-decade franchises introduced in the last 60 days, the firm believes Kratos is expanding their opportunity set at “the same time the biggest opportunities in the market are becoming more significant and certain,” the analyst added. Last week’s news of AI-enabled Valkyries flying with manned Air Force fighters is a meaningful technical achievement, according to the analyst, who advises to “buckle-up and keep holding on to KTOS.”