Kratos Defense & Security Solutions (NASDAQ:KTOS) Given New $85.00 Price Target at BNP Paribas Exane

Key Points

• BNP Paribas Exane raised its price target on Kratos to $85 (from $80) and kept a "neutral" rating, implying roughly a 49.7% upside from the stock's prior close.
• Kratos reported a Q1 beat (EPS $0.16 vs. $0.13 consensus; revenue $371M, +22.6% y/y), raised FY‑26 guidance after the Orbit Technologies acquisition, but the stock fell about 7.7% to $56.79 amid mixed near‑term guidance and selling pressure.
• Analysts are broadly positive with a consensus of "Moderate Buy" and an average price target of $97.67, though ratings and targets vary widely (several raises to $130–$134 and some cuts), while insiders have been net sellers and institutions own ~76% of shares.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) had its price target boosted by research analysts at BNP Paribas Exane from $80.00 to $85.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the aerospace company's stock. BNP Paribas Exane's price target suggests a potential upside of 49.68% from the stock's previous close.

Several other equities analysts have also issued reports on the company. Truist Financial raised Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Friday, May 1st. KeyCorp upped their target price on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the company an "overweight" rating in a research report on Wednesday, January 28th. Royal Bank Of Canada cut their price target on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating on the stock in a research report on Thursday. Canaccord Genuity Group set a $130.00 price objective on Kratos Defense & Security Solutions in a research note on Thursday. Finally, Stifel Nicolaus increased their price objective on Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a "buy" rating in a report on Tuesday, January 13th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, Kratos Defense & Security Solutions has a consensus rating of "Moderate Buy" and an average price target of $97.67.

Kratos Defense & Security Solutions Stock Down 7.7%

Shares of NASDAQ:KTOS traded down $4.73 during trading hours on Thursday, reaching $56.79. The stock had a trading volume of 4,118,313 shares, compared to its average volume of 4,199,030. Kratos Defense & Security Solutions has a 1 year low of $32.85 and a 1 year high of $134.00. The firm's 50 day moving average is $77.13 and its 200-day moving average is $84.59. The stock has a market capitalization of $10.64 billion, a price-to-earnings ratio of 436.73 and a beta of 1.06. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.03. The business had revenue of $371.00 million for the quarter, compared to analyst estimates of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The business's quarterly revenue was up 22.6% on a year-over-year basis. During the same quarter last year, the company earned $0.12 EPS. Research analysts predict that Kratos Defense & Security Solutions will post 0.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Phillip D. Carrai sold 6,500 shares of Kratos Defense & Security Solutions stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $90.91, for a total value of $590,915.00. Following the transaction, the insider directly owned 213,325 shares in the company, valued at $19,393,375.75. This trade represents a 2.96% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP De Burgreen Maria Cervantes sold 6,270 shares of the business's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $89.29, for a total transaction of $559,848.30. Following the completion of the transaction, the vice president directly owned 59,369 shares in the company, valued at $5,301,058.01. This represents a 9.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 169,027 shares of company stock valued at $13,522,040. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada grew its stake in shares of Kratos Defense & Security Solutions by 22.6% during the 1st quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company's stock worth $5,655,000 after purchasing an additional 35,098 shares during the period. Amundi acquired a new stake in shares of Kratos Defense & Security Solutions during the 1st quarter valued at approximately $791,000. NewEdge Advisors LLC boosted its stake in shares of Kratos Defense & Security Solutions by 64.4% during the 1st quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company's stock worth $39,000 after acquiring an additional 515 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Kratos Defense & Security Solutions by 178.0% in the 1st quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company's stock worth $108,000 after acquiring an additional 2,286 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Kratos Defense & Security Solutions by 11.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company's stock valued at $11,686,000 after purchasing an additional 41,265 shares in the last quarter. Institutional investors and hedge funds own 75.92% of the company's stock.

Trending Headlines about Kratos Defense & Security Solutions

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Q1 results beat expectations — adjusted EPS $0.16 vs. $0.13 consensus and revenue $371.0M (+22.6% y/y); backlog reported higher (Zacks cites $1.635B). These beats and backlog growth support revenue momentum across unmanned systems and government solutions. Kratos Defense Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Company raised FY‑26 guidance — management increased fiscal revenue and adjusted‑EBITDA guidance (GlobeNewswire release), reflecting stronger outlook after closing the Orbit Technologies acquisition. That guidance upgrade is fundamentally supportive for medium‑term growth. Kratos Reports First Quarter 2026 Financial Results and Increases Fiscal FY26 Financial Guidance
• Neutral Sentiment: Earnings call detail — management highlighted a 1.6:1 book‑to‑bill, a multi‑hundred‑million backlog/record backlog figure and a large ($14B) opportunity pipeline; executives emphasized strong unit economics in unmanned systems and microwave/turbine businesses. These operational metrics support the growth story but are forward‑looking. Kratos Defense & Security Solutions, Inc. (KTOS) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Near‑term guide/quarterly cadence disappointment — Q2 revenue guidance (roughly $400M–$410M; next‑quarter guide ~ $405M) came in slightly below some Street models, which likely pressured sentiment despite the full‑year uplift. Kratos NASDAQ: KTOS Delivers Strong Q1 CY2026 Numbers
• Negative Sentiment: Analysts trimmed price targets — BTIG and Piper Sandler lowered targets (BTIG to $100, Piper to $75), which can weigh on sentiment and contributed to the pullback even though some firms kept buy/neutral stances. Analyst Price Target Changes
• Negative Sentiment: Insider selling — CFO Deanna Lund sold 5,000 shares under a 10b5‑1 plan; while pre‑arranged, insider sales can add to short‑term selling pressure. SEC Filing: Insider Sale

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc NASDAQ: KTOS is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.