topstockalerts
Oct 26, 10:19 PM
Piper Sandler remains bullish on five defense technology stocks despite cutting several price targets as rising interest rates and uncertainty over U.S. defense spending pressure valuations. The firm expects solid third-quarter contract awards but warned that uncertainty surrounding fiscal 2027 government funding could temper expectations for the following quarter.
Piper maintained Overweight ratings on Kratos Defense & Security Solutions and Karman Holdings. Kratos’ price target was reduced to
$61 from
$75, with its hypersonic business viewed as a key growth driver, supported by approximately
$400 million in funding received earlier this year. Piper is also monitoring jet-engine production growth and potential tactical drone manufacturing.
Karman’s price target was cut to
$59 from
$91. Its backlog reached
$1.3 billion, up 84% year over year, and the company secured a seven-year,
$218 million contract for Lockheed Martin’s Terminal High Altitude Area Defense program.
$KTOS $KRMN
