Goldman upgrades drone play as Ukraine war shows future of defense
Goldman Sachs says combat has been "redefined" by Russia's war on Ukraine, creating an opportunity for Kratos Defense and Security Solutions as the U.S. allocates more defense dollars for drones and missile systems. The firm upgraded the company, which specializes in unmanned systems and propulsion technology, to buy from neutral in a Sunday note, alongside a $52 per share price target. Goldman's forecast implies about 13% upside from Friday's $45.84 close. Shares have already surged nearly 74% in 2025. Analyst Anthony Valentini said that Russia's war on Ukraine exemplified the need for cheap yet efficient weaponry. At the same time, he said, the Department of Defense could have a bigger appetite for that type of munitions to further cut costs without sacrificing quality. This also fits with President Donald Trump's desire to trim spending, he said. "The Ukraine conflict proved that large volumes of low-cost, technologically acceptable systems can combat exquisite platforms at a fraction of the cost," Valentini said. "We believe defense is in the early stages of a major structural change that will drive disruptive defense tech companies taking a larger share of global defense spending." He added that Kratos has "been positioning itself for the future of warfare for years" by building low cost yet "technically acceptable" products that can be made at scale, which could benefit the stock. KTOS YTD mountain Kratos stock in 2025. "Kratos has strategically invested in areas of the defense supply chain that are critical to the future of warfare and are at a key inflection point," the analyst added. "Funding is finally coming for drone programs, turbo jet and turbo fan engines are in high demand for UAS [unmanned aircraft systems] and missile systems, and both C5ISR [Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance, and Reconnaissance] and space are continuing to grow at a fast clip." The analyst said he sees multiple channels for "significant growth." "The company has taken the approach of casting a wide net across many opportunities that are increasing in importance and ultimately demand," he said. "Individually, each of these opportunities have the potential to redefine the company and could change the financial framework significantly."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
31 minutes ago
- Yahoo
We asked about Canada, you answered: Are Canadians proud their nationality? What's the most challenging thing about living in this country?
This year, Canadians from coast-to-coast are marking Canada Day not just as a celebration, but a moment of reflection on what it means to be Canadian, the values we hold and the path we're forging as a nation. On Canada's 158th birthday, the mood is anything but settled. Uncertainty looms both at home and abroad. South of the border, U.S. President Donald Trump's trade war has strained relations with one of Canada's closest allies, triggering economic ripples and renewed questions about sovereignty — including inflammatory calls from some U.S. voices to make Canada America's '51st state.' At home, Prime Minister Mark Carney's minority Liberal government is grappling with mounting economic pressures, regional divides and a shifting political landscape. And yet, amid rising tensions, a new wave of patriotism is rising. Canadians are doubling down on local pride, reconsidering their relationship with the U.S., and reimagining the country's role on the global stage. In the lead-up to Canada Day, we asked readers to capture how Canadians view their country, from national pride to global reputation and the challenges shaping our identity. READ MORE: Canada Day 2025: Are you proud to be Canadian? What is your biggest issue living in this country? Vote and share your view of the country A strong sense of national pride still runs deep, with over 70 per cent of poll respondents sharing they're proud to call this country home, according to a recent Yahoo News Canada survey. The surge in Canadian pride is likely fuelled by rising tensions with our southern neighbour, as a shared external threat has sparked a renewed sense of national unity. 'The threats with which the Trump administration has moved forward have really made Canadians think about the value of their country,' said Jack Jedwab, president Association for Canadian Studies, in an interview with CTV News. Soaring grocery bills, jam-packed ERs and the everyday cost of getting by were some of the key issues that kept Canadians talking and headlines buzzing this past year. According to Statistics Canada, grocery prices rose by 3.3 per cent over the past year — outpacing the national inflation rate of 1.7 per cent. Staple items like fresh vegetables, dairy and baked goods saw some of the sharpest hikes, putting added pressure on households already feeling the pinch. Meanwhile, long wait times in overcrowded emergency rooms sparked renewed calls for health-care reform, with recent data showing average ER wait times stretching well beyond provincial targets. As Canadians grapple with the rising cost of living, these everyday struggles have become defining issues in kitchen-table conversations and political debates. When asked to rank the top issues affecting their lives, more than half poll respondents — 52 per cent — pointed to the rising cost of living as their number one concern, putting it well ahead of other national worries. Ask anyone what comes to mind when they think of Canadians, and you'll likely hear a familiar list: kindness, politeness and a sense of fairness that runs deep. Whether it's holding the door for a stranger or saying 'sorry' even when it's not our fault, Canadians have a reputation for being humble, welcoming and community-minded. With political tensions heating up south of the border, many Canadians are taking a closer look on what makes us uniquely Canadian and doubling down on the differences. From growing concern over misinformation and political extremism to a renewed appreciation for public health care and democratic institutions, events in the U.S. are sparking a kind of national soul-searching. Among topics such as access to employment, active democracy, and LGBTQ+ rights and freedoms, 50 per cent of poll respondents say universal health care is the most important aspect of Canadian life to them. Canada's reputation on the world stage is a mix of pride and challenge right now. Known for politeness, diversity, and strong values, Canadians still score high globally, however, recent tensions with the U.S. and shifting geopolitics have put that image to the test. The bigger question is, how are Canadians viewing our own national identity? In 2025, Canadians are redefining what it means to be Canadian, marked by a surge in Canadian flags flying in the streets and the rise of the 'buy Canadian' movement. A recent survey by the Environics Institute revealed that 62 per cent of Canadians express strong pride in their national identity, marking a significant increase from 53 per cent in 2024.
Yahoo
35 minutes ago
- Yahoo
Standard Chartered faces US$2.7 billion lawsuit linked to 1MDB
By Anshuman Daga and Chanyaporn Chanjaroen (Bloomberg) – Standard Chartered is facing a US$2.7 billion lawsuit from liquidators alleging it played a role in enabling the laundering of billions of dollars misappropriated from Malaysian sovereign wealth fund 1MDB. Liquidators began legal proceedings against the UK-headquartered bank in Singapore, according to a statement released on Tuesday. Standard Chartered has yet to receive the claim documents and 'emphatically rejects any claims' made by the 1MDB companies, the bank said in a reply to Bloomberg News. The claimants allege that Standard Chartered Bank permitted more than 100 intrabank transfers between 2009 and 2013 that helped to conceal the flow of stolen funds. Such transfers led to the loss of more than $2.7 billion for the claimants, as well as S$20 million ($15.7 million) in public funds, according to the liquidators' statement. The British bank added that the liquidators had publicly stated they were 'shell companies with no legitimate business.' Standard Chartered had reported the transaction activities of the 1MDB companies, shut these accounts in 2013 and fully cooperated with the investigating authorities, the bank said. The Financial Times reported the lawsuit earlier. The 1MDB scandal was one of the biggest financial frauds in history, with stolen funds estimated to have exceeded $4 billion. Investigations led to the imprisonment of ex-Goldman Sachs Group executives and a former Malaysian prime minister. Malaysian financier Jho Low remains a fugitive. Singapore authorities imposed a S$5.2 million fine against Standard Chartered in 2016 for anti-money laundering breaches related to the case. Other banks were also fined. (Updates with Standard Chartered comments in second and fourth paragraphs.) More stories like this are available on ©2025 Bloomberg L.P.
Forbes
40 minutes ago
- Forbes
Musk-Trump Feud Reignites: Trump Responds To Musk's Spending Bill Attacks
The feud between President Donald Trump and his former ally, Elon Musk, was reignited once again on Tuesday after the world's richest person said he'll back primary challenges against GOP lawmakers voting for the president's signature spending bill, prompting Trump to retaliate by threatening to scrap government subsidies for Musk's firms. Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of ... More the White House. Getty Images Musk attacked the spending bill in a series of post on X on Monday night and early Tuesday morning, saying: 'Every member of Congress who campaigned on reducing government spending,' and backed the mega bill 'will lose their primary next year if it is the last thing I do on this Earth.' The billionaire then tweeted, 'If this insane spending bill passes, the America Party will be formed the next day,' as he bashed what he described as the 'Democrat-Republican uniparty.' Musk later said that anyone who votes for the legislation after campaigning 'on the PROMISE of REDUCING SPENDING' will see their face on a poster of Pinocchio with the caption 'LIAR' followed by the text 'Voted to increase America's Debt by $5,000,000,000,000.' The X owner reshared the results of an unscientific poll he conducted on the platform last month during his public blow-up with the president and wrote 'VOX POPULI VOX DEI 80% voted for a new party.' Earlier on Monday, Musk had attacked the GOP and the spending bill, tweeting: 'It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!!' In a post on his Truth Social platform, the president responded to Musk's criticism of his signature spending bill by threatening to scrap government subsidies provided to the billionaire's companies. Trump wrote: 'Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign.' The president then claimed: 'Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.' The president suggested that the Department of Government Efficiency—a brainchild of Musk, who also previously headed the agency—should 'take a good, hard, look' at the subsidies offered to companies like SpaceX and Tesla. Musk shot back on X, by daring Trump to slash the subsidies: 'I am literally saying CUT IT ALL. Now.' Tangent While criticizing the backers of the spending bill, Musk also boosted some of its prominent critics within the GOP, including some who have been the targets of Trump's ire. Musk retweeted a post by Rep. Thomas Massie, R-Ky., who Trump called a 'Third Rate Congressman,' which said: ''BBB' = our credit rating if this bill becomes law.' Musk then vowed to support Massie's reelection bid next year. Musk also reshared posts made by Sen. Thom Tillis, R-N.C., whom Trump threatened to primary before he announced his decision not to seek reelection. Tillis had reshared a Musk post which appeared to criticize the spending bill for targeting solar and battery tech, and wrote: 'Folks, Elon Musk is 100% right, and he understands this issue better than anyone. We should take his warnings seriously.' Musk, who left his role as a Trump administration 'special government employee' late in May, has since attacked the so-called 'Big Beautiful Bill' backed by the president and the House GOP. The billionaire, who had previously described himself as Trump's 'first buddy,' eventually directed his ire directly at the president by sharing older clips of the president bashing Republicans for raising the debt ceiling. The feud then escalated after the president accused Musk of having 'Trump Derangement Syndrome,' a phrase he often uses to target his critics. This began a back and forth social media war between the two, where Trump threatened to scrap Musk's government contracts. The billionaire retorted with a now deleted tweet alleging without evidence that Trump's name was in the 'Epstein Files.' Before this latest blow up both individuals appeared to have reached a detente, with Musk even tweeting that regretted some of his 'posts about President Donald Trump,' which he said 'went too far.' The Musk Vs. Trump Feud Timeline (Forbes) Musk Says He Regrets His Posts Bashing Trump Last Week—'Went Too Far' (Forbes)
