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Wednesday, January 8, 2020
Kratos Defense & Security (KTOS)
Additional Contract Wins
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.
Refer to the full report for the price target, fundamental analysis, and rating.
New Drone Award. On January 7th, Kratos received a $6 million order for unmanned aerial target drone systems, and related ancillary and spares support equipment. The order comes on the heels of a successful test by the U.S. Air Force in shooting down one of Kratos's BQM-167 target drones in testing a laser-guided rocket in a first-of-its-kind test, although it is unclear if the two are related.
Additional Drone Funding. We would note that under the recently passed DoD budget, congressional appropriators gave the Air Force an extra $100 million for the Low-Cost Attritable Aircraft Technology project, which aims to build drones that cost less than older models and could be more affordable to replace if lost in combat. Such aircraft could be deployed in swarms or...
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.