What Happened?

Shares of aerospace and defense company Kratos (NASDAQ: KTOS) jumped 6.7% in the morning session after the stock's positive momentum continued as an analyst at KeyBanc initiated coverage on the company with an overweight rating and a $90 price target. 

The move appeared to be a continuation of gains from the previous trading session when the new rating was announced. The analyst cited Kratos's "high-growth exposure" to key military programs as the basis for the positive outlook. These initiatives included hypersonic missiles and aircraft, as well as "collaborative combat aircraft." These, also known as "loyal wingmen," are drones designed to fly alongside and be controlled by piloted fighter jets, representing a significant area of growth in modern defense technology.

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What Is The Market Telling Us

Kratos’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Kratos is up 208% since the beginning of the year, but at $81.28 per share, it is still trading 23.1% below its 52-week high of $105.67 from October 2025. Investors who bought $1,000 worth of Kratos’s shares 5 years ago would now be looking at an investment worth $3,116.

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