Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) ranks among the best AI stocks to buy according to analysts. B.Riley maintained its price objective of $105 and upgraded Kratos Defense & Security Solutions, Inc. from Neutral to Buy on December 1. According to the firm, Kratos has an improved risk-reward profile since it holds “ample proprietary IP enabling an array of affordable solutions.”
B. Riley emphasized that Kratos Defense & Security’s capabilities in autonomy, hypersonics, and affordable and robust C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) could assist the company maintain and surpass expectations.
The firm’s study shows a modest decline in valuation multiples throughout the defense technology industry, with its tracked group of comparable companies currently trading at 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 nonetheless warranted for fast-growing defense technology companies amid what it calls “a generational recapitalization of strategic weapon systems” that rewards nimble innovators over traditional defense contractors.
Kratos Defense & Security Solutions, Inc. develops advanced technology, products, and systems for defense, national security, and commercial markets. It operates two main segments, including the Government Solutions and Unmanned Systems.
READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.
This article is originally published at Insider Monkey.
