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Kratos Defense & Security Solutions' Revenue Outlook Key to Stock Sentiment, RBC Says

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-- Kratos Defense & Security Solutions' (KTOS) revenue outlook remains the "most important" factor for investor sentiment on the stock after the company reported first-quarter results ahead of expectations, RBC Capital Markets said in a note emailed Thursday.

The brokerage said the 2026 guidance raise largely reflects the Orbit Technologies acquisition. RBC also pointed to growth across Kratos' unmanned systems, defense rocket systems, turbine technologies and microwave products businesses.

RBC said Kratos raised its 2026 forecast reflecting "strength

across its portfolio, as well as the confidence in the timing of defense contracts and outlays." The firm added that management remains confident in the company's hypersonics revenue ramp and Valkyrie production expansion.

RBC maintained its outperform rating and lowered price target to $80 from $100, citing "lower investor confidence in medium-term defense spending."

Price: $58.29, Change: $-3.23, Percent Change: -5.26%

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