Kratos Defense & Security Solutions' stock plummeted 6.83% during intraday trading on Thursday. The sharp decline comes as the company released its full-year financial outlook and several analysts revised their price targets downward.
The defense contractor recently issued its financial guidance, projecting total revenue in the range of $1.7 billion to $1.76 billion and adjusted EBITDA between $170 million and $176 million. Market participants appear to be reassessing these figures relative to heightened expectations following news of a record U.S. defense budget allocation for drone-related expenditures.
Adding to the negative sentiment, multiple analysts cut their price targets on the stock. RBC Capital lowered its target to $80 from $100, UBS reduced its target to $82 from $95, and BTIG cut its target to $100 from $115. These downward revisions contributed to the selling pressure during the session.
Comments