Goldman Sachs Upgrades Chime to Buy with $27 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 01 2025
0mins
Should l Buy KTOS?
The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The Fly.Top 5 Upgrades:Goldman Sachs upgradedChimeto Buy from Neutral with a price target of $27, up from $26, which offers 28% upside. The firm believes the market is underappreciating the take rate tailwinds from Chime's new Chime Card.BNP Paribas Exane upgradedToastto Outperform from Neutral with a $40 price target. While competition in point-ot-sale software for restaurants is accelerating, Toast's leadership is intact, the firm tells investors in a research note.B. Riley upgradedKratos Defenseto Buy from Neutral with an unchanged price target of $105. The firm sees a favorable risk/reward at current share levels, saying Kratos has "ample proprietary" intellectual property "enabling an array of affordable solutions."JonesResearch upgradedSpyre Therapeuticsto Buy from Hold with a $64 price target. Ahead of updates in 2026, the firm believes the stock's risk/reward "now skews positive."TD Securities upgradedNew Goldto Buy from Hold with a price target of $12, up from $7.50. The firm cites the proposed all-stock acquisition by Coeur Miningfor the upgrade.Top 5 Downgrades:Bernstein downgradedZscalerto Market Perform from Outperform with an unchanged price target of $264. While Zscaler continues to perform well, the company's fiscal Q1 report "added narrative issues" regarding 2026 annual recurring revenue guidance, driving concerns about increased competition, the firm tells investors in a research note.Baird downgradedTitan Machineryto Neutral from Outperform with a price target of $21, down from $24. The firm says further declines in both the company's U.S. and Europe businesses will pressure its earnings and book value.Barclays downgradedCrown Castleto Equal Weight from Overweight with a price target of $101, down from $104. The firm says collecting rent from EchoStar may prove challenging for the tower companies.Evercore ISI downgradedVICI Propertiesto In Line from Outperform with a price target of $32, down from $36. The firm has growing concerns over the regional gaming lease with Caesarsand how a low coverage ratio gets resolved.RBC Capital downgradedPTC Therapeuticsto Sector Perform from Outperform with a price target of $91, up from $82. With the shares rallying nearly 75% in the past three months, RBC's thesis has mostly played out, the firm tells investors in a research note.Top 5 Initiations:UBS initiated coverage ofCarvanawith a Buy rating and $450 price target. The firm says the company has a "differentiated, best-in-class" online platform and customer experience that positions it to gain share in the large used vehicle market.Benchmark initiated coverage ofCal-Maine Foodswith a Buy rating and $100 price target. While the Cal-Maine name is well-known, the firm believes its valuation is "over-indexed to its legacy as a commodity producer" and discounts sweeping changes throughout the egg category and Cal-Maine's subsequent mix shift to more valuable specialty production.Goldman Sachs initiated coverage ofBeta Technologieswith a Buy rating and $47 price target. The firm views Beta as best positioned among the electric vertical take-off and landing companies. Citi, BTIG, Cantor Fitzgerald, BofA, Morgan Stanley, and Needham also started the name with Buy-equivalent ratings.JPMorgan initiated coverage ofBillionToOnewith an Overweight rating and $150 price target. The firm likes the setup for the stock, saying the company will continue to build out its commercial infrastructure to capture growing demand in both prenatal and oncology. Piper Sandler, BTIG, William Blair, and Stifel also started coverage of the stock with Buy-equivalent ratings, while Jefferies and Wells Fargo initiated the name with Neutral-equivalent ratings.Morgan Stanley initiated coverage ofEvommunewith an Overweight rating and $36 price target. The firm sees a favorable risk/reward for the shares despite the data for EVO756 and EVO301 being early. William Blair, Cantor Fitzgerald, Leerink, and Evercore ISI also started the name with Buy-equivalent ratings.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy KTOS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on KTOS
Wall Street analysts forecast KTOS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KTOS is 108.69 USD with a low forecast of 80.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
11 Buy
2 Hold
0 Sell
Strong Buy
Current: 85.250
Low
80.00
Averages
108.69
High
150.00
Current: 85.250
Low
80.00
Averages
108.69
High
150.00
About KTOS
Kratos Defense & Security Solutions, Inc. is a technology, products, system and software company addressing the defense, national security, and commercial markets. It operates through two segments: Kratos Government Solutions (KGS) and Unmanned Systems (US). The KGS segment includes its microwave electronic products, space, satellite and cyber, training solutions, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR)/modular systems, turbine technologies, and defense and rocket support services operating segments. The US segment consists of its unmanned aerial, unmanned ground, unmanned seaborne and related command, control and communications system businesses. Its KGS and US segments provide products, solutions and services for mission-critical National Security programs. KGS and US customers primarily include National Security-related agencies, the DoD, intelligence agencies and classified agencies, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kratos Defense Poised for Growth Amid Defense Spending Shift
- Market Opportunity: Kratos Defense CEO Eric DeMarco highlights that the U.S. is entering a multi-year defense recapitalization cycle, with a potential $25 billion annual opportunity arising from a mere 10% shift in procurement spending from traditional security suppliers to smaller firms like Kratos.
- Product Innovation: Kratos is collaborating with Northrop Grumman to develop the autonomous XQ-58 Valkyrie drones, with expectations for the project to transition from mission evaluation to low-rate production and eventually full-rate production, potentially leading to significant annual demand.
- Financial Outlook: Although Kratos has not included expected Valkyrie drone production contributions in its base financial forecasts for fiscal years 2026 or 2027, there is a real chance for upside surprises for shareholders if Marine Corps procurement accelerates faster than anticipated.
- Growth Potential: Management anticipates that the company's hypersonics portfolio will emerge as a significant near-term growth driver, projecting over $1 billion in revenue by 2028, despite facing execution risks and margin pressures.
See More
Drone Dominance Program Launches
- Program Overview: The U.S. Department of Defense's Drone Dominance Program (DDP), valued at $1.1 billion, aims to enhance drone technology through a four-phase procurement process to address modern battlefield threats, reflecting the government's commitment to rapid procurement and technology alignment.
- New Procurement Philosophy: Secretary of Defense Pete Hegseth emphasizes that procurement will no longer be hindered by traditional bureaucratic constraints, aiming to buy effective drones quickly and at scale to ensure U.S. dominance in the drone sector, thereby enhancing 'America's Arsenal of Freedom.'
- Trial Phase: The first evaluation event, 'Gauntlet I,' is set for February 18, 2025, at Fort Benning, where military operators will directly control vendor systems, with approximately $150 million in prototype delivery orders expected to be issued post-evaluation, marking an acceleration in the procurement process.
- Future Outlook: As the DDP progresses, unit prices are expected to decrease while production volumes soar, with the Department of Defense clearly stating that funding is steady and the competition has begun, indicating that selected drones will be rapidly deployed to the front lines within five months.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Kratos Secures $65 Million Defense Contracts
- Significant Contract Value: Kratos Defense & Security Solutions announced new contracts valued at approximately $65 million, focusing on designing and developing simulators for warfighter training, which not only enhances the company's market position in the defense sector but also reflects strong demand for its innovative technologies.
- Multi-Platform Support: The new contracts involve delivering training systems for various aircraft, including the Army's CH47F Chinook and UH-60M Blackhawk helicopters, demonstrating the company's commitment to providing cost-effective training solutions that enhance strategic importance in military operations.
- Strong Stock Performance: Despite mixed overall market performance, Kratos stock rose 4.31% to $100.30, indicating positive investor interest driven by specific company news, while shares have increased by 198.01% over the past 12 months, positioning the company favorably.
- Optimistic Future Outlook: Investors are looking forward to the earnings report on February 25, 2026, with an EPS estimate of $0.13 and revenue expected to reach $327.81 million, reflecting confidence in the company's growth potential moving forward.
See More
Kratos Defense Stock Bounces After Contract Wins
- Contract Wins: Kratos Defense announced it has secured contracts worth $65 million for designing and developing simulators and other solutions, showcasing its ongoing competitiveness in the military drone sector.
- Training Support: The contracts focus on avionics maintenance training for U.S. Army CH47F and UH-60M helicopters, indicating Kratos's strategic importance in supporting operations and maintenance of key aircraft platforms.
- Revenue Impact: If these contracts are realized in fiscal 2026, they could lead to approximately a 5% increase in annual revenue for Kratos; however, if spread over five years, the boost would only be about 1%, significantly affecting investor expectations for the company's future.
- Market Reaction: Despite a 2% rise in stock price, investor uncertainty regarding the specifics of the contracts suggests a cautious market outlook for Kratos, highlighting the need for the company to provide more clarity to bolster investor confidence.
See More
Kratos Wins Contracts Worth $65 Million
- Contract Value: Kratos Defense & Security Solutions announced it has secured contracts worth approximately $65 million, which will positively impact the company's financial health and strengthen its market position in the defense and security sector.
- Market Impact: The acquisition of these contracts not only enhances Kratos' revenue outlook but may also attract more investor interest in its future business developments, further solidifying its standing in the competitive defense market.
- Strategic Significance: By successfully winning these contracts, Kratos demonstrates its competitive advantages in technology and services, which is expected to drive more similar opportunities in future projects, leading to sustainable growth.
- Industry Outlook: With defense spending on the rise, Kratos' new contracts will enable it to better meet customer demands while laying a foundation for future technological innovations and market expansions.
See More
Kratos Defense Poised for Growth Amid Defense Spending Shift
- Market Opportunity: Kratos Defense CEO Eric DeMarco highlights that the U.S. is entering a multi-year defense recapitalization cycle, with a potential $25 billion annual opportunity arising from a mere 10% shift in procurement spending from traditional security suppliers to smaller firms like Kratos.
- Product Innovation: Kratos is collaborating with Northrop Grumman to develop the autonomous XQ-58 Valkyrie drones, with expectations for the project to transition from mission evaluation to low-rate production and eventually full-rate production, potentially leading to significant annual demand.
- Financial Outlook: Although Kratos has not included expected Valkyrie drone production contributions in its base financial forecasts for fiscal years 2026 or 2027, there is a real chance for upside surprises for shareholders if Marine Corps procurement accelerates faster than anticipated.
- Growth Potential: Management anticipates that the company's hypersonics portfolio will emerge as a significant near-term growth driver, projecting over $1 billion in revenue by 2028, despite facing execution risks and margin pressures.
See More
Drone Dominance Program Launches
- Program Overview: The U.S. Department of Defense's Drone Dominance Program (DDP), valued at $1.1 billion, aims to enhance drone technology through a four-phase procurement process to address modern battlefield threats, reflecting the government's commitment to rapid procurement and technology alignment.
- New Procurement Philosophy: Secretary of Defense Pete Hegseth emphasizes that procurement will no longer be hindered by traditional bureaucratic constraints, aiming to buy effective drones quickly and at scale to ensure U.S. dominance in the drone sector, thereby enhancing 'America's Arsenal of Freedom.'
- Trial Phase: The first evaluation event, 'Gauntlet I,' is set for February 18, 2025, at Fort Benning, where military operators will directly control vendor systems, with approximately $150 million in prototype delivery orders expected to be issued post-evaluation, marking an acceleration in the procurement process.
- Future Outlook: As the DDP progresses, unit prices are expected to decrease while production volumes soar, with the Department of Defense clearly stating that funding is steady and the competition has begun, indicating that selected drones will be rapidly deployed to the front lines within five months.
See More
The Rise and Transformation of Physical AI
- Physical AI Transformation: Bank of America analyst Martyn Briggs highlights that the rise of Physical AI is underway, projected to drive a trillion-dollar market shift as value transitions from digital models to physical machines like robots, autonomous vehicles, and drones, marking a significant shift of intelligence from screens to machines.
- Humanoid Robot Production: Over 50 companies are developing humanoid robot platforms, with shipments expected to grow from tens of thousands today to millions annually over the next decade, driven by labor shortages and falling component costs, which will transform operations in manufacturing and logistics.
- Autonomous Driving Adoption: Robotaxis are operational in multiple cities, and advanced driver-assistance systems are set to achieve mass adoption in China by 2030, with hardware cost reductions significantly lowering ride-hailing and freight costs, thus transforming mobility into a software-defined, AI-driven platform.
- Investment Opportunities: Bank of America has highlighted 15 publicly traded companies exposed to Physical AI, including Nvidia, Tesla, and Qualcomm, which are leading in chips, robotics, mobility, and sensing, expected to spearhead this transformative wave.
See More
Kratos Secures $65 Million Defense Contracts
- Significant Contract Value: Kratos Defense & Security Solutions announced new contracts valued at approximately $65 million, focusing on designing and developing simulators for warfighter training, which not only enhances the company's market position in the defense sector but also reflects strong demand for its innovative technologies.
- Multi-Platform Support: The new contracts involve delivering training systems for various aircraft, including the Army's CH47F Chinook and UH-60M Blackhawk helicopters, demonstrating the company's commitment to providing cost-effective training solutions that enhance strategic importance in military operations.
- Strong Stock Performance: Despite mixed overall market performance, Kratos stock rose 4.31% to $100.30, indicating positive investor interest driven by specific company news, while shares have increased by 198.01% over the past 12 months, positioning the company favorably.
- Optimistic Future Outlook: Investors are looking forward to the earnings report on February 25, 2026, with an EPS estimate of $0.13 and revenue expected to reach $327.81 million, reflecting confidence in the company's growth potential moving forward.
See More
Kratos Defense Stock Bounces After Contract Wins
- Contract Wins: Kratos Defense announced it has secured contracts worth $65 million for designing and developing simulators and other solutions, showcasing its ongoing competitiveness in the military drone sector.
- Training Support: The contracts focus on avionics maintenance training for U.S. Army CH47F and UH-60M helicopters, indicating Kratos's strategic importance in supporting operations and maintenance of key aircraft platforms.
- Revenue Impact: If these contracts are realized in fiscal 2026, they could lead to approximately a 5% increase in annual revenue for Kratos; however, if spread over five years, the boost would only be about 1%, significantly affecting investor expectations for the company's future.
- Market Reaction: Despite a 2% rise in stock price, investor uncertainty regarding the specifics of the contracts suggests a cautious market outlook for Kratos, highlighting the need for the company to provide more clarity to bolster investor confidence.
See More
Kratos Wins Contracts Worth $65 Million
- Contract Value: Kratos Defense & Security Solutions announced it has secured contracts worth approximately $65 million, which will positively impact the company's financial health and strengthen its market position in the defense and security sector.
- Market Impact: The acquisition of these contracts not only enhances Kratos' revenue outlook but may also attract more investor interest in its future business developments, further solidifying its standing in the competitive defense market.
- Strategic Significance: By successfully winning these contracts, Kratos demonstrates its competitive advantages in technology and services, which is expected to drive more similar opportunities in future projects, leading to sustainable growth.
- Industry Outlook: With defense spending on the rise, Kratos' new contracts will enable it to better meet customer demands while laying a foundation for future technological innovations and market expansions.
See More
