Kratos Defense (KTOS) Gains Buy Rating on Strong Proprietary Technology

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) ranks among the best AI stocks to bargain according to analysts. B.Riley maintained its terms nonsubjective of $105 and upgraded Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) from Neutral to Buy connected December 1. According to the firm, Kratos has an improved risk-reward illustration since it holds “ample proprietary IP enabling an array of affordable solutions.”

B. Riley emphasized that Kratos Defense & Security’s capabilities successful autonomy, hypersonics, and affordable and robust C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) could assistance the institution support and surpass expectations.

The firm’s survey shows a humble diminution successful valuation multiples passim the defence exertion industry, with its tracked radical of comparable companies presently trading astatine 8.7x FY26 EV/Revenue and 26.5x median EV/EBITDA, down from 10.5x and 29.0x previously. B.Riley argues that these premium multiples are nevertheless warranted for fast-growing defence exertion companies amid what it calls “a generational recapitalization of strategical limb systems” that rewards nimble innovators implicit accepted defence contractors.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops precocious technology, products, and systems for defense, nationalist security, and commercialized markets. It operates 2 main segments, including the Government Solutions and Unmanned Systems.

While we admit the imaginable of KTOS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.