Shares of Kratos Defense & Security (NASDAQ: KTOS) jumped 11% higher on Wednesday on speculation that the company could be a takeover target for defense giant Lockheed Martin (NYSE: LMT).
Kratos is a maker of drones and defense electronics, having pivoted away from telecommunications infrastructure equipment in 2004. The company has great potential, thanks in large part to its portfolio of next-generation drones. But so far, it has not landed a big order for those aircraft that would really solidify it as a mainstay defense company.
Image source: Air Force Photo by 2nd Lt. Randolph Abaya, 586 Flight Test Squadron.