Kratos Defense Shares Rise Above Analyst Target: What’s Next?
Recently, Kratos Defense & Security Solutions, Inc. (Symbol: KTOS) saw its share price exceed the average analyst 12-month target of $34.55, trading at $34.92 per share. When a stock reaches its analyst-determined target, the analyst typically faces two options: downgrade their valuation or raise the target price. Their decision may also hinge on recent developments affecting the company’s prospects, leading to potential price adjustments.
Within the Zacks coverage universe, 11 different analyst targets contribute to the average for Kratos Defense. While the average provides a general outlook, it encompasses a range of individual opinions. For instance, one analyst helps pull the average down with a target of $19.00, while another sets a more optimistic target of $40.00. The standard deviation among these targets stands at $6.006.
The rationale for examining the average KTOS price target lies in the “wisdom of crowds” approach. This method aggregates diverse analyst predictions to establish a consensus view, rather than relying solely on the opinion of a single expert. With KTOS now trading above the average target price of $34.55 per share, investors have reason to evaluate the company’s trajectory. They may wonder if $34.55 is merely a pit stop on the way to a higher target or if the valuation has become extended, prompting considerations about scaling back their position.
| Recent KTOS Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 7 | 7 | 7 | 7 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 4 | 4 | 4 | 4 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.75 | 1.75 | 1.75 | 1.75 |
The average rating shown in the table ranges from 1 to 5, with 1 signifying a Strong Buy and 5 translating to a Strong Sell. Data used here comes from Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
