Movers and SHAKERS
Kratos Defense & Security (KTOS)
Awarded $338 million Contract; We Expect More Contracts to Follow
Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Award. On Friday, the DoD announced Kratos has been awarded a five and a half year $338.1 million firm fixed-price, cost-plus-fixed-fee and time-and-material contract for Lots 17-21 production, out-of-warranty-repairs, and contractor logistics support. The award is for target drones for the Air Force. Fiscal 2021 procurement funds in the amount of $30,499,362 were obligated at the time of award.
And It Could Be More. Historically, add-ons, such as for payloads, can increase the dollar value of the overall spend by about 30%. Meaning if Kratos received $60 million per year under the award from 2022-2027, add-ons could increase the overall annual amount received by an additional $18 million, if history is a guide ...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.