Group 1 - Kratos Defense and Security Solutions Inc (NASDAQ:KTOS) shares increased by 2.7% to $70.79, reaching 20-year highs after an upgrade from BTIG to "buy" from "neutral" [1] - BTIG raised its price target for KTOS to $72 from $55, highlighting potential growth in the Unmanned Aerial Systems unit [1] - The company raised its full-year forecast following strong second-quarter revenue, with Canaccord Genuity initiating coverage with a "buy" rating [2] Group 2 - Currently, 12 out of 15 analysts covering KTOS have a "buy" or better rating, with a 12-month consensus price target of $70.85, aligning closely with current stock levels [2] - Year-to-date, KTOS has outperformed with a 167% increase, and a 105% rise in the last three months [3] - There remains short covering potential, as short interest accounts for 6% of the stock's available float [3]

Core Viewpoint - An analyst's positive outlook on Lockheed Martin and the U.S. defense sector has led to an increase in the company's stock price, contrasting with a decline in the broader market [1] Company Summary - Kristine Liwag of Morgan Stanley upgraded Lockheed Martin's recommendation from equal weight to overweight, raising the price target by $50 to $575 per share [2] - Despite not being Morgan Stanley's top pick in the sector, Lockheed Martin was recognized for its strong foreign sales activities, which are expected to drive future growth [4] Industry Summary - Morgan Stanley has shifted its view on the defense sector from cautious to attractive, anticipating a U.S. defense budget of $1 trillion this year, which is expected to benefit defense stocks [3] - The global defense industry is currently thriving due to ongoing conflicts such as the war in Ukraine and rising geopolitical tensions, positioning major defense exporters like Lockheed Martin favorably [5]