Kratos Defense & Security Solutions is seeing its business thrive amid accelerating defense spending stemming from global conflicts, according to Raymond James.
He also raised his price target by $7, or 35%, to $27, suggesting the stock could climb 56% from Thursday's close.
"Kratos provides content on most of the major western air defense systems," Gesuale said in a report to clients after the market closed Thursday.
At the same time, NATO's orders for Multiple Air Defense Systems, $11 billion of which require Kratos materials over several years, could also boost the stock, he added.
KTOS YTD mountain Kratos shares over the past year.
Persons:
Raymond James, Brian Gesuale, Kratos, Gesuale
Organizations:
Kratos Defense, Security, Air Defense, NATO, Arrow Systems, Multiple Air Defense Systems
Locations:
Thursday's, Israel, Ukraine, Taiwan, U.S