KTOS - Kratos Stock Jumps: How High Can It Go?
2024-02-20 11:16:53 ET
Summary
- Kratos Defense stock has jumped nearly 80% in a year and 50% since I marked it as a buy.
- Kratos reported strong growth in earnings, with revenues increasing by 10% in the fourth quarter and 15.5% for the full year.
- Kratos expects double-digit growth in 2024, driven by multiple areas including hypersonic systems, rocket motors, and unmanned aerial vehicles.
Kratos Defense (KTOS) stock jumped following the presentation of its fourth quarter results. The stock has now climbed nearly 80% in a year and 50% since I marked KTOS expensive compared to peers with its 50x EV/EBITDA which likely was driven by investors looking for investment opportunities in companies with an unmanned aerial vehicles portfolio. In September 2023, I changed my rating on Kratos stock from Hold to Buy recognizing the stretched valuation as well as the strategic strength of its product portfolio. Since marking the stock a buy, it has continued to outperform the market with a 38% return compared to a 12.5% return for the broader markets....
Kratos Stock Jumps: How High Can It Go?