JPMorgan Sees 42% Upside for Kratos with $82 Price Target
JPM•JPM•JPM•JPM•JPMorgan upgraded Kratos Defense & Security Solutions to Overweight with an $82 price target implying 42% upside after unmanned-systems revenue climbed 30.9% in Q1 and the company raised its 2026 revenue outlook to $1.76 billion. Shares recovered 2% overnight despite a 23% decline after $1 billion stock offering and improving balance sheet.
JPMorgan upgraded Kratos Defense & Security Solutions to Overweight, setting an $82 price target and implying a 42% upside based on strong defense spending, new contract wins, and partnerships in space and mobile communications.
Kratos reported Q1 unmanned-systems revenue growth of 30.9% and raised its 2026 revenue outlook to a range of $1.7–$1.76 billion, compared with consensus of $1.74 billion, supported by Orbit and Nomad contributions.
Shares rose over 2% overnight despite a 23% year-to-date decline following a $1 billion stock offering, as an improving balance sheet is expected to lower cash usage while funding ongoing growth initiatives.
