Kratos DefenseKTOS

Guggenheim set a price target of $74 for the company this week. This is significantly higher than the current trading price of about $47, though it sits below the average analyst target of $98.

While price targets are just estimates of where a stock might trade in a year, this move suggests the firm sees a path for the stock to recover much of its recent drop. The company is currently working to turn its drone prototypes into large-scale production contracts, which is the main factor that will decide if it can reach these higher valuations.

Source: Guggenheim

Kratos confirmed that its ARAV-B ballistic missile targets were successfully used during Pacific Dragon 2026, a large-scale training exercise involving the U.S. Navy and international partners. These targets are designed to mimic the flight paths of real threats, allowing military forces to test their defense systems in realistic scenarios.

While this is a single exercise rather than a new contract, it reinforces the company's role as a key provider of target systems for the Pentagon. Success in high-profile multinational drills helps solidify the company's position when these agencies decide which systems to buy for long-term training programs.

Source: GlobeNewsWire

Kratos has secured a contract worth more than $20 million to deliver mobile satellite gateways. These systems act as bridges between ground networks and satellites, allowing military units to stay connected while moving through remote or difficult areas.

While this is smaller than the company's major drone programs, it adds to a record backlog of work that already stands at over $2 billion. This win shows that Kratos is successfully selling its satellite technology to international allies, which helps diversify its income beyond just U.S. government spending.

Source: GlobeNewsWire

Kratos received a $35 million award to produce military-grade hardware and systems. The company did not name the specific program due to security reasons, but noted the equipment will directly support troops in the field.

While this is a relatively small win compared to the company's 2 billion dollar backlog, it adds to a steady string of production awards. For a company trying to move from testing prototypes to high-volume manufacturing, every contract that shifts from development into active production helps prove the business can scale.

Source: GlobeNewsWire

Kratos will supply its Spartan J85 engines to support Boeing's production of long-range munitions for the U.S. Air Force. This follows a recent $75 million contract awarded to Boeing for these systems, which turn standard bombs into guided, long-distance weapons.

This is a clear example of Kratos moving from experimental work into steady production. By dedicating specific factory space to this program, the company is securing a role in a high-volume defense supply chain. For a long-term owner, this adds more predictable revenue to the backlog and shows that Kratos's focus on affordable jet engines is paying off beyond just its drone business.

Source: GlobeNewsWire

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