Goldman Sachs Remains a Buy on ​Kratos Defense & Security Solutions (KTOS)

​Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the Best Russell 2000 Stocks to Buy Right Now. On January 20, Anthony Valentini from Goldman Sachs reiterated a Buy rating on the stock and raised the price target from $93 to $125. Earlier, on January 13, Stifel Nicolaus also reiterated a buy rating on the stock and raised the price target from $112 to $134.

​Analysts at Goldman Sachs view the aerospace and defense sector as poised to remain strong in 2026. This demand is driven by favorable conditions for original equipment, where supply lags behind demand. Moreover, aftermarket growth has also outpaced global active service munitions, driven by strong pricing. The firm also noted that demand for business jets remains strong amid constrained supply chains and improving defense hardware growth. Goldman Sachs believes that current market dynamics favor KTOS due to its industry exposure.

Stifel noted that improved sentiment toward Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is driven by the company’s order momentum in Valkyrie drones. Moreover, the firm also likes the progress of its hypersonic testing program, MACH-TB.

​Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) develops advanced technology, products, and systems for defense, national security, and commercial markets. It operates two main segments: Government Solutions and Unmanned Systems.

While we acknowledge the potential of KTOS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.