Kratos Defense and Security Solutions is vastly undervalued in my opinion. They are creating a broad line of unmanned drones, missiles, and defense systems with an enormous back log. In their most recent earnings, they reported around a $2.6 billion back log, with demand ever increasing through 2025 and into 2026. They were trading at some otherworldly valuations last October and into January popping up to around 125$ a share. Since then they have been awarded about 3/4 of a billion dollars in different contracts from various source. I think that shows significant government confidence in KTOS ability to produce a high quality defense product. KTOS has used these contracts to expand their supply with aims at increasing production by almost triple throughout 2026. I’m not guaranteeing it returns to that price level but could easily see it happening. With a new military budget of $1.5+ trillion, and an increasing focus on unmanned defense systems, I think KTOS has a lot of room to run in the coming months. I think 46$ is far too cheap for a possible future industry leader in unmanned defense systems and have a personal price target of 90$
What do yall think?
