Kratos Defense Upgraded to Buy, Shares Rise

Jefferies upgraded Kratos Defense (NASDAQ:KTOS) to Buy from Hold, sending the stock up about 3% on 6 April 2026.
Analyst Sheila Kahyaoglu projects 31% CAGR revenue growth for the Government Solutions segment through 2028, with upside revenue $3.7 bn and EBITDA $500 m.
Jefferies cites a $14 bn pipeline including Prometheus and hypersonic programs and increased Valkyrie drone production for USMC, USAF and international customers.
Price target set at $85 (base) with upside to $105, implying 53x base 2028 EBITDA and 35x upside EBITDA versus peers’ 22x.