Target UAS Award. On Thursday, Kratos was awarded a $50.9 million contract modification exercising an option to procure 65 BQM-177A Subsonic Aerial Targets, 50 for the Navy, seven for the government of Japan, and eight for the government of Saudi Arabia, as well as associated technical and administrative data in support of full rate production lot three.On Target. We had previously mentioned that just in the second half of this year, Kratos could receive awards from the Air Force and Navy for target drones, a confidential program, an international target award, and an engine award. Well, the Air Force, Navy, International, and engine awards have been won. This bodes well for the future.And Other Businesses Continue to Grow. Other Kratos businesses also continue to win awards, including a $12 million award for satellite and communication system products, hardware and equipment and $4 million in funding on a new, single award, C5ISR program, with a total potential program value of approximately $75 million.Budget. While the Defense Department continues to operate under a stop-gap continuing resolution, which prevents new-start programs and multiyear activities, Congress passed the FY22 National Defense Authorization Act at higher levels than the President requested. And, as we have previously pointed out, numerous proposals in the NDAA play to Kratos' strengths.Compelling Risk/Reward. We believe the current price level presents investors with a compelling risk/reward opportunity. We continue to believe it is a question of when, not if. We are maintaining our Outperform rating and $30.00 12-month price target. We continue to believe in the long-term prospects of Kratos and believe the Company to be well positioned to capitalize on new and emerging trends in defense. Read More >>