Latest news with #Poponak
Business Insider
30-06-2025
- Business
- Business Insider
Positive Report for Kratos Defense (KTOS) from Goldman Sachs
Kratos Defense (KTOS – Research Report) received a Buy rating and price target from Goldman Sachs analyst Noah Poponak yesterday. The company's shares closed last Friday at $45.84. Don't Miss TipRanks' Half Year Sale Take advantage of TipRanks Premium for 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Poponak is a 4-star analyst with an average return of 6.3% and a 51.95% success rate. Poponak covers the Industrials sector, focusing on stocks such as Boeing, Booz Allen, and Bombardier. In addition to Goldman Sachs, Kratos Defense also received a Buy from Truist Financial's Michael Ciarmoli in a report issued on June 27. However, on June 16, J.P. Morgan maintained a Hold rating on Kratos Defense (NASDAQ: KTOS). Based on Kratos Defense's latest earnings release for the quarter ending March 30, the company reported a quarterly revenue of $302.6 million and a net profit of $4.5 million. In comparison, last year the company earned a revenue of $277.2 million and had a net profit of $1.3 million Based on the recent corporate insider activity of 121 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KTOS in relation to earlier this year. Last month, Boyd Bradley L, a Director at KTOS sold 3,800.00 shares for a total of $132,544.00.
CNBC
24-05-2025
- Business
- CNBC
Goldman Sachs says buy these five stocks that are set to pop
Goldman Sachs revealed recently several buy-rated stocks that analysts at the investment bank say are set to rise. The Wall Street firm says these companies are resilient and that investors should quickly buy them. CNBC Pro combed through Goldman Sachs research to find five stocks that it says have more upside. They include: Microsoft , KinderCare, Lyft, Woodward and Diamondback. KinderCare Buy the dip in shares of the early childhood learning company, according to analyst George Tong While KinderCare's most recent earnings report was mixed, Goldman is doubliing down on the stock. "While sales cycles have elongated, the company noted healthy growth in parental inquiries, communications and tours, which create a healthy pipeline that can convert during the seasonally strong summer months," Tong wrote. The bank also says it's optimistic that there will be no changes in President Trump's budget outline, which is a positive for the Child Care and Development Block Grant that assists low-income families. This in turn should help KinderCare revenue growth, Tong added. With shares down more than 34% this year, Tong urged clients to quickly accumulate shares. "KinderCare's business model is resilient in an uncertain macro environment given child care services are essential, with broader demand outpacing supply," he went on to say. Diamondback Energy The energy and natural gas company is firing on all cylinders, Goldman wrote recently. Analyst Neil Mehta sees a compelling entry point as shares are down about 17% this year. "As an industry cost-leader, FANG's execution strength can continue to drive capital efficiency improvements over time in our view," he wrote. Mehta likes Diamondback's robust free-cash flow and understands shareholders have concerns about the price of oil. "Investors also highlight risks associated with waiting for a more constructive near- to medium-term oil price to add barrels given timing the market can be challenging," he said. Still, Goldman is sticking with the stock. "We reiterate our Buy rating on FANG and remain constructive on FANG's consistency of execution strength following strong operating and financial results in 1Q25," the bank said. Woodward The aerospace and defense company is seeing robust demand, analyst Noah Poponak wrote, citing several catalysts ahead. Poponak recently held a series of meetings with Woodward's investor relations team and came away feeling even more bullish about the stock. "Aerospace aftermarket fundamentals are strong, including units, price and pent-up demand," the analyst wrote. Further, Poponak says military spending growth remains robust and aerospace manufacturing is picking up. "Industrial indicators are solid, including high levels of power demand," he added. The bank has a Street high, 12-month price target of $229 on the stock, and Woodward remains a top pick and is on Goldman's prestigious conviction buy list. "Multiple growth and margin drivers across the business," Poponak added. Woodward shares are up 25% this year. KinderCare "While sales cycles have elongated, the company noted healthy growth in parental inquiries, communications and tours, which create a healthy pipeline that can convert during the seasonally strong summer months. ... .KinderCare's business model is resilient in an uncertain macro environment given child care services are essential, with broader demand outpacing supply." Lyft "Strong Execution in a Stable Industry Backdrop. ... .While short-term debates will likely stay rooted in industry trends around rideshare pricing, market share fluctuations, positioning against the [autonomous vehicle] theme and/or any changes in consumer discretionary behavior, we believe that shares are dislocated from LYFT's earnings power in the next 2-3 years and upgrade the stock to Buy." Read more about this call here. Diamondback Energy "As an industry cost-leader, FANG's execution strength can continue to drive capital efficiency improvements over time in our view. ... .Investors also highlight risks associated with waiting for a more constructive near- to medium-term oil price to add barrels given timing market can be challenging ... We reiterate our Buy rating on FANG & remain constructive on FANG's consistency of execution strength following strong operating & financial results in 1Q25." Microsoft "With a strong presence across all layers of the cloud stack, including applications, platforms & infrastructure, MSFT is well-positioned, in our view, to capitalize on a number of long-term secular trends, such as Gen-AI, public cloud consumption, SaaS adoption, digital transformation, AI/ML, BI/analytics, & DevOps." Read more about this call here. Woodward "Multiple growth and margin drivers across the business ... Aerospace aftermarket fundamentals are strong, including units, price and pent-up demand ... Aerospace OE is starting to improve. Defense growth is solid, and [joint direct attack munition] is unique for WWD. Industrial indicators are solid, including high levels of power demand."
Yahoo
29-04-2025
- Business
- Yahoo
Goldman Sachs Pulls the Trigger on These 2 Defense Stocks
As the Trump Administration approaches its 100th day, budget cuts have taken center stage. President Trump has unleashed DOGE on the federal budget, wielding a chainsaw approach to spending cuts. The nature of the cuts will tell us something about the new White House priorities. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. DOGE, so far, is focused more on civilian budget cuts than military, and the new Administration is planning to present Congress with a defense budget request in the neighborhood of $1 trillion. And the prospect of higher defense spending is bullish for defense stocks. Goldman Sachs analyst Noah Poponak lays out the case, and the reasons to move towards defense stocks, writing: 'The medium-term defense budget picture looks better than we thought. The DoD budget is still likely closer to a peak than a trough, and it is not entirely clear where each of the next few years will land, plus there are still margin questions. But at a minimum the near-term trajectory is looking higher than we thought…' Following this line of thought, Poponak has pulled the trigger on two defense stocks with exposure to growth segments of the larger defense sector. Let's give these picks a closer look, using the latest data drawn from the TipRanks platform and the comments from the Goldman expert. L3Harris Technologies (LHX) The first stock we'll look at is a $40 billion technology firm and contractor company with strong ties to the defense industry. The company in its current form dates back to 2019, when it formed through the merger of L3 Technologies and Harris Corporation. Today, L3Harris offers solutions in the fields of autonomous systems, command and control, electronic warfare, ISR and SIGINT, missile warning and defense, and resilient communications – all vital capabilities in high demand by the Pentagon, as well as by specialized civilian agencies. L3Harris produces a wide range of defense-oriented products, including such varied items as the Sky Warden ISR/Strike aircraft, various uncrewed and remotely operated surface vessels, solid rocket motors, airborne networking radios, and the Viper Shield digital electronic warfare suite for the F-16 program. The company operates in more than 100 countries, and generated over $21 billion in revenue last year. Turning to the company's most recent set of financial results, we find that L3Harris brought in $5.1 billion in 1Q25, a result that was down 2.1% vs. 1Q24 and missed expectations by $120 million. At the bottom line, the company realized a non-GAAP EPS of 2.41, beating the forecast by 9 cents per share. Nevertheless, we should note here that L3Harris' stock has been outperforming the broader markets recently. For the year-to-date, while the S&P 500 has dropped 6%, LHX shares are actually up by more than 3%. Goldman's Poponak points out why it makes sense to consider the opportunity afforded to investors here. The analyst says of this defense contractor, 'L3Harris could be well positioned in a higher defense spending environment, given its exposure to faster growing parts of the budget. It does not hold any one major platform program that would have risk of spending reduction or margin challenge. Its company-wide margin performance has been better than peers in recent quarters. And it trades at a valuation discount to the average of the large-cap prime contractors.' The Goldman sector expert goes on to rate LHX as a Buy, and his $263 price target points toward a share gain of 22% in the coming year. (To watch Poponak's track record, click here) L3Harris holds a Moderate Buy consensus rating from the Street, based on 15 recent reviews that break down to 11 Buys and 4 Holds. The shares are priced at $216.08 and their $249.27 average target price implies a 12-month upside potential of 15%. (See LHX stock forecast) Huntington Ingalls (HII) Next on our list is Huntington Ingalls, best-known as the largest warship builder in the US – but also a major technology developer in the defense sector. The company operates two shipbuilding divisions – Ingalls Shipbuilding and Newport News. The first, based in Mississippi and Alabama, employs over 11,000 people designing and building a range of amphibious ships, destroyers, and cutters for both the US Navy and the US Coast Guard. This division is the Navy's largest provider of surface combatants. The company's second main division, Newport News, employs 25,000 people and is based in Virginia, on the James River just upstream from Hampton Roads and Norfolk. This area has been the Navy's largest base and construction port since the nation's founding, and today Huntington Ingalls' installations there build and maintain the Navy's fleets of nuclear-powered aircraft carriers and submarines. Huntington is currently building the Navy's new Ford-class supercarriers, and carries out the mid-life refueling and overhaul on the Nimitz-class ships. The third main division in Huntington Ingalls' operations, Mission Technologies, has over 7,000 workers and operates through more than 100 facilities around the world. The division works on the development and application of various defense-related tech, including artificial intelligence, cyber warfare, nuclear technology, and a wide range of cutting-edge sensor systems. HII stock has also outperformed the broader markets this year, and convincingly so. So far in 2025, the shares are up by 20.5%. The gains have been accrued despite the stock taking a beating following the February release of HII's 4Q24 results. Huntington Ingalls dialed in quarterly revenues of $3 billion, down 5.7% from the fourth quarter of 2023 – and missing the forecast by $60 million. At the bottom line, the company's $3.15 EPS figure was 38 cents per share less than had been expected. On a more positive note, the company has a solid work backlog, totaling $48.7 billion as of the end of 2024. Analyst Poponak note the issues the company has faced, but takes a positive stance, writing of the naval builder, 'We expect Navy shipbuilding to be relatively high priority within the defense budget medium-term and for HII to benefit. The bigger question at the company recently has been margins, as labor and supply chain challenges drove cost overruns. A recent executive order appears to cement the administration's focus on domestic maritime labor, supply chains, and production, and there is the possibility for Shipyard Accountability and Workforce Support (SAWS) language to be implemented in the future. That could drive margin upside for HII. Even in the absence of SAWS, HII has now reset margin input assumptions lower in two consecutive quarters, and historically has rarely done so in three… The stock trades at a valuation discount to the large-cap defense primes on most key metrics.' These comments support Poponak's Buy rating, and his $234 price target implies an 8% gain for the shares on the one-year horizon. The Goldman view is bullish, but the overall view on HII is more cautious. The consensus rating here is a Hold, based on 7 reviews that include 1 Buy, 4 Hold, and 2 Sells. Most seem to think the stock is overvalued; it is currently priced at $226.05 and its $182.29 average price target implies a downside for the coming year of 19%. (See HII stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
