Kratos gains after Jefferies lifts to 'buy' on growth potential

Shares of defense firm Kratos Defense & Security Solutions' KTOS.O rise nearly 5% to about $71 premarket

Jefferies upgrades rating to "buy" from "hold", maintains PT at $85

Brokerage says co has upside to its revenue outlook, led by faster hypersonics growth, expanding missile propulsion opportunities and steady demand for microwave electronics from defense programs

Says KTOS has strong growth potential as rising Valkyrie production, backed by solid demand, could lift revenues and profits well above co's base expectations

17 of 21 brokerages rate the stock "buy" or higher, 4 "hold"; their median PT is $121- data compiled by LSEG

As of last close, stock had fallen 11.3% YTD