$KTOS

ARK ETFs bought CoreWeave (CRWV) and Kratos (KTOS) for $19.68M and $9.15M, respectively, and sold Robinhood (HOOD) and Personalis (PSNL) for $17.01M and $12.01M. Other trades included Teradyne (TER), Recursion (RXRX), and smaller positions in several other companies.

B. Riley upgraded Skyworks (SWKS) to Buy with a $107 price target, citing faster Qorvo deal closure. Evercore ISI upgraded Procter & Gamble (PG) to Outperform with a $166 target. Deutsche Bank upgraded Penn Entertainment (PENN) to Buy with a $25 target. StoneX upgraded Texas Roadhouse (TXRH) to Buy with a $200 target. Citi upgraded JetBlue (JBLU) to Neutral with a $4.50 target. Berenberg downgraded Nike (NKE) to Sell with a $27.50 target, citing its smaller sportswear position.

Redburn initiated coverage of U.S. defense stocks, rating Lockheed Martin (LMT), Northrop Grumman (NOC), and Kratos (KTOS) as 'buy' with price targets of $650, $680, and $70, respectively. AeroVironment (AVAV) was rated 'neutral'. The brokerage cited a proposed $1.5 trillion U.S. military budget for fiscal 2027 as a potential demand driver. Redburn forecasts significant revenue and earnings growth for these companies through 2030.

Analysts made several calls on Tuesday, including Goldman Sachs lowering Netflix's price target but maintaining a buy rating, Wells Fargo upgrading Cleveland-Cliffs, and Mizuho raising AMD's price target to $705. Other notable moves include upgrades for Skyworks Solutions, Dollar General, and Prosperity Bancshares, while new coverage was initiated on companies like AvePoint, Pasqal Holdings, and Standard Nuclear.

Rothschild Redburn initiated coverage on Kratos Defense & Security Solutions (KTOS) with a buy rating and a $70 price target, citing its dual strategy and projected revenue growth of 18% and adjusted EBITDA growth of 25.3% from 2026-2030. Kratos reported Q2 revenue of $459M, up 30% YoY, and raised its revenue guidance. Other analysts have varied price targets and ratings for the company.

Byrna (BYRN) fell 4.2% post-earnings despite a strong quarter. AerSale (ASLE) reported a 33.9% revenue decline, missing estimates, and dropped 19.9%. Cadre (CDRE) beat expectations with 31.8% revenue growth but fell 18.3%. Kratos (KTOS) saw 30.5% revenue growth but declined 16.9% due to weak guidance. The market has shifted focus from AI to geopolitics and back to fundamentals.

Kratos Defense & Security Solutions (KTOS) announced over $100 million in contracts for space and cyber mission capabilities. The contracts involve developing prototype systems for RF signal processing, intelligence, and cyber operations, leveraging Kratos' KnownSpace® Network and software products. The work supports electronic warfare and offensive cyber operations, with a focus on rapid adaptation to emerging mission needs.

Pentagon Secretary Pete Hegseth announced initiatives focused on AI, robotics, and autonomous weapons, including a new Autonomous Warfare Command (Autowarcom) by October 2027. Project Agincourt will develop Autowarcom's structure and boost drone procurement. Stocks of Ondas (ONDS), AeroVironment (AVAV), Kratos (KTOS), Red Cat (RCAT), and Unusual Machines (UMAC) rose overnight in response.

Jefferies reduced its price target for Kratos Defense & Security Solutions (KTOS) to $68 from $80, citing revised free cash flow estimates. The firm expects negative cash flow in fiscal 2026 and 2027 due to increased spending, but maintains a Buy rating, projecting 19% revenue growth in 2027. Kratos reported strong Q2 results, with revenue up 30% year-over-year and adjusted EBITDA up 43%. Several analysts raised their price targets, while others adjusted them downward.

GE Aerospace (GE) and Kratos Defense & Security (KTOS) announced the successful first ignition of the GEK800 turbofan engine, a propulsion system for advanced missiles and UAVs. Kratos reported Q2 2026 revenue of $379.7M (22% growth) and raised full-year guidance to $1.75B–$1.81B. GE Aerospace's Defense segment posted $3.4B in Q2 2026 revenue (16% growth) and expects full-year operating profit of $1.6B–$1.7B. Both companies face scaling and margin risks.