UBS Says Kratos Defense & Security Solutions, Inc. (KTOS) Growth Fully Reflected in Current Valuation
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is among the 9 Best Video Surveillance and Private Security Stocks to Buy.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best video surveillance stocks on our list.
TheFly reported on February 18 that UBS initiated coverage of KTOS with a Neutral rating and a price target of $79. The firm noted that the company’s growth appears fully reflected in its current share price and noted that it has re-rated to five times its historical multiple and now trades three times higher than its historical premium over traditional defense peers. UBS also highlighted that the stock is more expensive than high-growth peers such as Palantir and expressed a preference for defense companies offering growth at more attractive valuations.
The same day, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) also revealed that it had won a contract from the Joint Hypersonics Transition Office of the Department of Defense to assist with the testing and assessment of thermal protection systems for hypersonic vehicles. Using decades of experience in hypersonics, KTOS will create standardized test conditions and procedures to speed up the development of materials, laying the groundwork for more aerothermal test facilities.
In order to validate these techniques and develop next-generation U.S. hypersonic technologies, the program will involve a number of material test programs that will expedite development and deployment for national defense applications.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) provides advanced security, surveillance, and defense solutions, including unmanned systems and monitoring technologies. It focuses on protecting critical infrastructure and supporting government and commercial security operations worldwide.
While we acknowledge the potential of KTOS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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