RBC Capital Cuts Price Target on Kratos Defense & Security Solutions, Inc. (KTOS) to $80, Keeps Outperform Rating

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is among the 9 Best Drone Stocks to Buy According to Wall Street Analysts. On May 7, RBC Capital cut its price target on the stock to $80 from $100, while maintaining an Outperform rating.

The adjustment followed the company’s first-quarter 2026 results, which reported 16% organic revenue growth to $371 million. Adjusted EBITDA margin came in at just over 10%. Adjusted EPS stood at $0.16, up 33% year-over-year.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) also raised its full-year guidance for 2026 to include the impact of Nomad and Orbit acquisitions. RBC Capital noted that while the increase reflected strength across the business, it was cutting the estimated EBITDA multiple for the company from 65-times to 50-times, citing continued talks about delayed contract award timings.

Following the results, Citizens also trimmed its price target on the stock to $105 from $125 and kept a Market Outperform rating, while Piper Sandler cut the price target to $75 from $99 and reiterated a Neutral rating.

As of the close of business on May 8, KTOS is a Strong Buy based on recommendations from 14 analysts and has an average share-price upside potential of 81%.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a technology company focused on the development of advanced products and systems for defense, national security, and commercial markets.

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