Kratos Defense price target raised to $50 from $38 at RBC Capital

RBC Capital analyst Ken Herbert raised the firm’s price target on Kratos Defense (KTOS) to $50 from $38 and keeps an Outperform rating on the shares as part of a broader research note offering a positive outlook for “small cap defense tech” names. The sector is poised for continued outperformance, driven by the growth in FY26 defense spending, idiosyncratic positioning in growth markets – including space, missiles, missile defense, hypersonics, unmanned, and AI – as well as some company specific valuation mismatches, the analyst tells investors in a research note.