Friday, February 15, 2019

Kratos Defense & Security (KTOS)

Recent industry transactions highlight value of unmanned systems.

Kratos Defense &
Security Solutions, Inc. provides engineering, information technology (IT)
services, and warfighter solutions primarily in the United States. It operates
in two segments, Kratos Government Solutions (KGS) and Public Safety and
Security (PSS). The KGS segment provides engineering, IT, and weapons systems
to federal, state, and local government agencies, primarily U.S. Department of
Defense.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for rating 

• Recent Industry
  Transactions. Two recent acquisitions in the unmanned vehicle space highlight the value of the business. FLIR Systems announced two acquisitions over the last two weeks and while FLIR did not provide financials, our back of the envelope calculations suggest the acquisitions were made in excess of 5 times revenue, above the 4 multiple we have used to value Kratos’s unmanned business.
• KTOS Unmanned System is a
  Game Changer. As we have previously highlighted, the UAS business is a game changer for Kratos. We believe it is not a question of if but, rather, when the Company will begin to reap the fru…
  
  
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*Analyst
certification and important disclosures included in full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision.