Should You Buy Kratos Defense and Security Solutions Inc (KTOS) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/26
Kratos Defense and Security Solutions Inc (KTOS) is not a strong buy at the current moment for a beginner investor with a long-term strategy. While the company demonstrates strong financial growth and has positive catalysts in the defense sector, the recent price surge of 50% in 13 trading days, coupled with hedge fund selling and a neutral insider trading trend, suggests the stock may be overbought. Analysts are mixed, with some expressing concerns about valuation. The technical indicators and options data do not present a compelling entry point for a long-term investment right now.
Technical Analysis
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), but the RSI at 42.318 is neutral, and the MACD histogram is positively contracting, indicating weakening momentum. The stock is trading below its pivot level (119.602) with key support at 108.391, suggesting potential downside risk in the short term.
Analyst Ratings and Price Target Trends
Analyst sentiment is mixed. Piper Sandler initiated coverage with a Neutral rating and a $99 price target, citing concerns about the recent rally. However, other firms like Goldman Sachs, Noble Capital, and B. Riley raised price targets significantly, with some highlighting strong upside potential due to defense budget increases and solid execution.
Wall Street analysts forecast KTOS stock price to fall 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 USD and a high forecast of 150 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.
Wall Street analysts forecast KTOS stock price to fall 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 USD and a high forecast of 150 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.
Current: 112.670
Current: 112.670
