Kratos Defense price target raised to $25 from $20 at Benchmark

Benchmark analyst Josh Sullivan raised the firm’s price target on Kratos Defense (KTOS) to $25 from $20 and keeps a Buy rating on the shares, citing Kratos’ Q4 results, FY24 catalysts, and what it views as the company’s “increasingly attractive positioning across the emergence of high attrition warfare,” which includes drones, micro-engines, rockets, missiles and space. The firm believes the first round of the Air Force’s Collaborative Combat Aircraft, or CCA, effort is focused on high-end complex drone fighter like capabilities, where it sees Kratos as best positioned to subcontract with Northrop Grumman (NOC) as a likely partner, the analyst tells investors.