BWXT - Kratos upgraded at Truist in strong defense demand environment

Kratos Defense & Security (NASDAQ:KTOS) +7.2% in Thursday's trading after Truist Securities upgraded shares to Buy from Hold with a $20 price target, up from $15, citing a more favorable view of the outlook for defense spending in both the U.S. and globally due to Russia's invasion of Ukraine. "The demand backdrop for the sector is the best it has ever been, which should offer investors an inflation-hedged and recessionary resistant environment to generate relative outperformance," Truist analyst Michael Ciarmoli wrote, according to MarketWatch. In the aerospace sector, 737 MAX uncertainties and 787 challenges have been disappointing and recession fears are weighing on multiples, "but we still believe production restarts and rate increases will anchor 2023 estimates and the sector's long-term thesis," according to Ciarmoli. Truist also favors Buy-rated BWX Technolgies (BWXT), L3Harris Technologies (LHX), Maxar Technologies (MAXR) and Mercury Systems (MRCY). Speculation recently has cited Kratos Defense (KTOS) as a potential

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Kratos upgraded at Truist in strong defense demand environment