Wednesday, December 09, 2020

Kratos Defense & Security (KTOS)
$37.7 million Skyborg Award

Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.

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

Refer to the full report for the price target, fundamental analysis, and rating.

Skyborg Award. Monday evening, Kratos was awarded a $37.7 million Skyborg Program contract from the USAF Advanced Aircraft Office to integrate, test, and deliver XQ-58A Valkyrie aircraft for the Skyborg program. Kratos will produce missionized prototypes with the ability to fly in experimentation events while teaming with manned aircraft. We view Monday’s announcement as a significant step in the Company’s unmanned systems program.


One of 3, But No Northrup Grumman.  Kratos was one of three firms receiving an award, the others being Boeing ($25.7 million award) and General Atomics ($14.3 million award). Significantly, left out was Northrup Grumman, one of the original four firms announced in July to have received awards to move forward in the Air Force program to build an AI-enabled drone wingman …

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the 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.