Goldman upgrades Kratos Defense to Buy ahead of 'substantial' 2020 growth
Goldman Sachs analyst Noah Poponak upgraded Kratos Defense & Security Solutions to Buy from Neutral and raised his price target for the shares to $26 from $24. The company's "multi-year, multi-program, strong long-term growth story is intact and approaching," while the stock has recently pulled back, Poponak tells investors in a research note. The analyst thinks 2020 is shaping up to see a "substantial" acceleration in growth for Kratos, which he believes can start driving shares higher. Beyond 2020, he sees the company's organic revenue growth ranging from 23%-30% annually through 2023. Kratos shares are down 30% from its 52-week high, which provides a buying opportunity, says Poponak.