Kratos Defense and Security Stock Rises on Analyst Price Target Increase

Kratos Defense and Security Solutions (KTOS) saw its stock surge nearly 4% on Thursday, outperforming the broader market's 0.5% decline. The rally followed a significant price target increase by RBC Capital analyst Ken Herbert, who raised his fair value estimate for the drone manufacturer by 38% to $90 per share, up from $65. Herbert maintained his 'outperform' rating on the stock.

The bullish MOVE coincided with a series of positive developments for Kratos, including a five-year strategic manufacturing partnership with Elroy Air, a next-generation aircraft developer specializing in military logistics. Under the agreement, Kratos will serve as the exclusive manufacturing partner for Elroy's Chaparral cargo drone. The company also announced progress on altitude testing for a new drone engine developed with a major industry peer.