Kratos wins $61.1M Navy contract for 70 BQM-177A aerial targets
Kratos Defense secured a $61.1 million Navy contract modification for full-rate production of 70 BQM-177A Subsonic Aerial Targets under Lot 6, extending its SSAT program into large-scale manufacturing. The company’s approved vendor status in the Missile Defense Agency’s SHIELD program and a $106.33 average price target imply roughly 17.5% upside.
1. Contract Modification Awarded
Kratos Defense secured a $61.1 million U.S. Navy contract modification, designated Lot 6, for full-rate production of 70 BQM-177A Subsonic Aerial Targets. This order advances the program’s transition into large-scale defense manufacturing.
2. BQM-177A Target Role
The BQM-177A drones replicate flight characteristics and radar signatures of modern subsonic cruise missiles, enabling realistic testing of surface-to-air missile systems and valuable training for naval personnel.
3. SHIELD Program Inclusion
Kratos has been designated an approved vendor for the Missile Defense Agency’s SHIELD program, which holds approximately $151 billion in contract opportunities, positioning the company alongside major aerospace and defense firms.
4. Analyst Outlook
The consensus price target among three analysts stands at $106.33, implying a 17.5% upside, reflecting confidence in Kratos’s growing contract pipeline and technical capabilities.