Barclays initiated coverage of Kratos Defense & Security Solutions (KTOS). It assigned an "Overweight" rating. The firm set a price target of $90.
This initiation forms part of a broader coverage rollout for the U.S. aerospace and defense sector. Barclays believes the sector is in the "early innings of a modern day industrial revolution."
Barclays analyst Anthony Valentini prefers defense technology companies over traditional large-cap prime contractors.
Barclays' positive outlook on Kratos highlights the company's strong position in next-generation areas. These areas include unmanned systems and military technology. These areas are expected to see higher growth trajectories.