Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is among the The 10 Best Drone Stocks to Buy Right Now. On November 18, BNP Paribas Exane initiated coverage of the stock with a Neutral rating and a $80 share price target.
Pixabay/Public domain
Based on ratings and price targets from 15 analysts as of close of trading on November 26, the stock has strong positive sentiment, with a one-year average price target of $99.80, representing an upside potential of 31.71%.
The initiation of coverage by BNP Paribas Exane follows BTIG’s price-target adjustment earlier in the month, when the firm raised its target to $95 from $80, while maintaining a Buy rating on the stock.
BTIG highlighted Kratos Defense & Security Solutions, Inc.’s (NASDAQ:KTOS) promising investments in tactical and hypersonic drones, which have resulted in encouraging customer response. The analyst also added that the company’s recent contract awards were due to an increased focus on new opportunities.
In other news, on November 14, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) announced that it would acquire Orbit Technologies Ltd. for $356.3 million, with the transaction to be funded entirely in cash.
Buying the Israel-based company would boost the drone maker’s capabilities, equipping it with vital satellite-based communications for military, mobile and unmanned systems.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops and markets transformative, affordable products and platforms for national security needs. The stock is up 187% year to date through the Nov. 26 close.
While we recognize the potential of KTOS as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: 8 Best Small-Cap Defense Stocks to Buy Right Now and The 13 Most Undervalued Stocks Under $20.
Disclosure: None.