Stifel hikes defense firm Kratos' PT on strong drone orders; shares rise

Stifel lifts PT on Kratos Defense & Security Solutions KTOS.O to $134 from $112; maintains rating at "buy"

New PT is a 13.7% upside to stock's last close

KTOS up nearly 2% at about $120 premarket

Brokerage cites co's strong Valkyrie drone orders and hypersonic program progress, with focus on low-cost and mass-producible weapons driving market share gains

Says Northrop Grumman's NOC.N choice of KTOS's Valkyrie for the USMC program signals strong confidence, driven by lower cost, proven flight record and growing strategic relevance

U.S. President Donald Trump on Wednesday called for a 2027 U.S. military budget of $1.5 trillion, up sharply from this year's $901 billion

15 of 18 brokerages rate KTOS "buy" or higher, 3 "hold"; median PT is $100 - data compiled by LSEG

KTOS rose nearly 188% in 2025