Kratos and NCSIST Successfully Test Integrated Mighty Hornet IV UAV
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy KTOS?
Kratos Defense & Security Solutions and the National Chung-Shan Institute of Science and Technology, NCSIST, announced the successful test of the integrated Mighty Hornet IV Attack UAV, a transformation of the MQM-178 Firejet target drone. Following the months of planning, design, and subsystem tests in their respective facilities, the team tested and validated the NCSIST-provided payload/mission system to confirm its operational capability with the Mighty Hornet IV aircraft without revisions to the design. This milestone established the baseline for flight testing later this year, for which the NCSIST technical team traveled to Kratos' Oklahoma City design and production facility to finalize the requirement set and design this week.
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Analyst Views on KTOS
Wall Street analysts forecast KTOS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KTOS is 108.69 USD with a low forecast of 80.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 85.250
Low
80.00
Averages
108.69
High
150.00
Current: 85.250
Low
80.00
Averages
108.69
High
150.00
About KTOS
Kratos Defense & Security Solutions, Inc. is a technology, products, system and software company addressing the defense, national security, and commercial markets. It operates through two segments: Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment includes its microwave electronic products, space, satellite and cyber, training solutions, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR)/modular systems, turbine technologies, and defense and rocket support services operating segments. The US segment consists of its unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. Its KGS and US segments provide products, solutions and services for mission-critical National Security programs. KGS and US customers primarily include National Security-related agencies, the DoD, intelligence agencies and classified agencies, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Trial Phase: The first evaluation event, 'Gauntlet I,' is set for February 18, 2025, at Fort Benning, where military operators will directly control vendor systems, with approximately $150 million in prototype delivery orders expected to be issued post-evaluation, marking an acceleration in the procurement process.
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- Strong Stock Performance: Despite mixed overall market performance, Kratos stock rose 4.31% to $100.30, indicating positive investor interest driven by specific company news, while shares have increased by 198.01% over the past 12 months, positioning the company favorably.
- Optimistic Future Outlook: Investors are looking forward to the earnings report on February 25, 2026, with an EPS estimate of $0.13 and revenue expected to reach $327.81 million, reflecting confidence in the company's growth potential moving forward.
See More
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- Training Support: The contracts focus on avionics maintenance training for U.S. Army CH47F and UH-60M helicopters, indicating Kratos's strategic importance in supporting operations and maintenance of key aircraft platforms.
- Revenue Impact: If these contracts are realized in fiscal 2026, they could lead to approximately a 5% increase in annual revenue for Kratos; however, if spread over five years, the boost would only be about 1%, significantly affecting investor expectations for the company's future.
- Market Reaction: Despite a 2% rise in stock price, investor uncertainty regarding the specifics of the contracts suggests a cautious market outlook for Kratos, highlighting the need for the company to provide more clarity to bolster investor confidence.
See More
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- Market Impact: The acquisition of these contracts not only enhances Kratos' revenue outlook but may also attract more investor interest in its future business developments, further solidifying its standing in the competitive defense market.
- Strategic Significance: By successfully winning these contracts, Kratos demonstrates its competitive advantages in technology and services, which is expected to drive more similar opportunities in future projects, leading to sustainable growth.
- Industry Outlook: With defense spending on the rise, Kratos' new contracts will enable it to better meet customer demands while laying a foundation for future technological innovations and market expansions.
See More
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- Contract Scope: The contracts cover the design, development, and delivery of simulators and other training solutions that support operations and maintenance for various platforms, including Army and Air Force helicopters, further solidifying Kratos' position in the aviation training market.
- Client Base: The awards include contracts from the U.S. Department of War and allied nations, indicating Kratos' influence and collaboration opportunities in the international market, potentially laying the groundwork for future business growth.
- Technological Edge: The procurement of Kratos' MBRAT avionics maintenance training simulator, which supports multiple platforms on a single device, enhances training efficiency and flexibility, strengthening the company's competitive edge in high-end military training solutions.
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