Kratos Defense & Security Solutions(US:KTOS) Yahoo Finance·2026-01-02 14:10Company Overview - Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops advanced technology, products, and systems for defense, national security, and commercial markets, operating in two main segments: Government Solutions and Unmanned Systems [3] Investment Outlook - Analysts consider Kratos among the best AI stocks to buy, with B.Riley upgrading its rating from Neutral to Buy and maintaining a price objective of $105, citing an improved risk-reward profile due to its proprietary IP and affordable solutions [1] - B.Riley highlights Kratos' capabilities in autonomy, hypersonics, and C5ISR, suggesting these strengths could help the company meet and exceed market expectations [1] Industry Trends - The defense technology industry is experiencing a modest decline in valuation multiples, with comparable companies currently trading at 8.7x FY26 EV/Revenue and 26.5x median EV/EBITDA, down from 10.5x and 29.0x previously [2] - Despite the decline, B.Riley argues that premium multiples are justified for fast-growing defense technology companies due to a "generational recapitalization of strategic weapon systems" that favors innovative firms over traditional contractors [2]