Piper Sandler Upgrades Kratos to Overweight With $75 Target as KTOS Raises 2026 Revenue Guidance

According to Piper Sandler, Kratos Defense (KTOS) on Wednesday received an Overweight upgrade with a $75 price target, implying 45% upside from Tuesday's close of $51.87. Analyst Clarke Jeffries cited a stark disconnect between the company's operational momentum and its discounted valuation following a 43% pullback from recent highs.

Kratos on Tuesday raised its full-year 2026 revenue forecast to $1.75 billion–$1.81 billion and elevated organic growth guidance to 18%–23%, up from prior estimates of 15%–19%. Q2 results showed total revenue of $458.8 million, beating Wall Street by 12%, with earnings per share of $0.21, exceeding consensus by $0.06. Piper Sandler cited improved visibility on the MACH-TB hypersonic program and defense budget resilience as key catalysts for the positive outlook.