Kratos Defense & Security (KTOS) – Continuing Resolution Likely to Impact 2022 Results, But Compelling Risk Reward

Aerospace and Defense
1 min read

Friday, February 04, 2022

Kratos Defense & Security (KTOS)
Continuing Resolution Likely to Impact 2022 Results, But Compelling Risk Reward

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.

    CR. The Federal government continues to operate under a Continuing Resolution budget, now expected to last at least through February 18th. According to Federal News Network, the Senate has not brought any appropriation bills to the floor, and lawmakers are still trying to figure out the top line spending figure. Some have expressed concern that the process to appoint a new Supreme Court justice could push other work further out. Operating under a CR prevents new-start programs and multiyear activities.

    But This Too Will Pass.  With a top Navy official last week noting that the Navy could face a half-billion dollar shortfall for its ballistic missile submarine program, alone, if the CR is not resolved, we believe pressure will bear on Congress to do its job and pass a budget …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*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. 


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