Core Insights - A significant price target increase by RBC Capital's Ken Herbert has positively impacted Kratos Defense & Security Solutions' stock, leading to a nearly 4% rise in share price, contrasting with a 0.5% decline in the S&P 500 index [1][2] Group 1 - RBC Capital raised its fair value assessment of Kratos by 38%, setting a new price target of $90 per share, up from $65, while maintaining an outperform (buy) recommendation [2] - The timing of the price target increase coincided with positive business developments from Kratos, indicating a potential correlation between the two [3] - Kratos announced a five-year strategic manufacturing arrangement with Elroy Air, focusing on self-piloting aircraft for military logistics, making Kratos the exclusive manufacturing partner for Elroy's Chaparral cargo drone [4] Group 2 - On the same day, Kratos and GE Aerospace initiated altitude testing on the GEK800 drone engine, designed for next-generation unmanned aerial systems and collaborative combat aircraft [5] - The developments in partnerships and technology advancements suggest a strong growth trajectory for Kratos in the defense sector [4][5]