Kratos Defense & Security (KTOS)
2022 NDAA Plays to Kratos’ Strengths
Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
SASC 2022 NDAA. The Senate Armed Services Committee’s (SASC) 2022 National Defense Authorization Act (NDAA) mirrors to a great extent the same proposed legislation passed by the House. Delving deeper into the proposed legislation, we believe numerous proposals play to Kratos’ strengths.
Details. The SASC proposal allocates $740 billion to the DoD, in-line with the House’s $739.5 billion. Both are up significantly from both the Biden Administration’s $715 billion proposal, and fiscal 2021’s $704.5 billion enacted amount. We expect the Senate Defense bill to be released in the near future and then the two bills will need to be reconciled, but given the similarities, we would …
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.