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BTIG Upgrades Kratos Defense (KTOS) to Buy on MUX TACAIR Program Win

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best Russell 2000 stocks to buy now. On August 14, BTIG upgraded its rating on Kratos from “Neutral” to “Buy” and set a price target of $80. BTIG cited Kratos’ selection for the U.S. Marine Corps’ MUX TACAIR unmanned aerial systems program as the primary reason for the upgrade. Analyst Andre Madrid noted that this development addresses previous concerns about the company’s lack of a sizable program of record with steady procurement volumes.

[Shutterstock: 380107090, scyther5]

BTIG expressed confidence that Kratos could see substantial growth in its Unmanned Systems division in the coming year. This will come on the back of funding earmarked for the MUX TACAIR program in FY2026. The firm also believes that a broader “approximately $8.8 billion unmanned request” will enhance Kratos’ bottom line. BTIG highlighted potential upside across other segments of Kratos’ portfolio, specifically mentioning opportunities in Kratos Turbine Technologies, C5ISR/Modular Systems, hypersonics, and Microwave Electronics.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a national security technology company. It develops and manufactures unmanned aerial systems, satellite communications, missile defense systems, and cybersecurity solutions for the U.S. Department of Defense and allied nations. Kratos operates across multiple facilities in the United States with a workforce of over 3,500 employees.

While we acknowledge the potential of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KTOS and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Energy Stocks to Buy For the Long Term and Top 10 Industrial Stocks to Buy Amid Easing Tariff Uncertainties.

Disclosure: None. This article is originally published at Insider Monkey.

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