Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the best military tech stocks to buy now. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) received a vote of confidence on July 22 as Citizens JMP raised its price target to $70 from $40, while maintaining an Outperform rating. At the current market price of $58, the new target implies a potential upside of around 21%.
In a research note to investors, the firm highlighted several tailwinds expected to drive Kratos’ growth in both the short and long term. These include the upcoming FY26 national defense budget, increased emphasis on commercial-military space alignment, and the growing significance of Operation Spiderweb, which analysts describe as a “watershed moment” for drone-based warfare strategy.
Citizens emphasized that field checks and sector trends suggest Kratos is well-positioned to benefit from shifting U.S. defense priorities. The company, long known for its focus on unmanned aerial systems and autonomous technologies, is viewed as being in the “early innings” of what could be a prolonged growth cycle. With geopolitical tensions and the modernization of military systems accelerating demand for advanced drone platforms, analysts see Kratos as one of the more agile players in the space.
Kratos specializes in tactical drones, directed energy, and autonomous defense systems for U.S. and allied forces.
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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