Benchmark Initiates Coverage of Kratos Defense & Security Solutions with Buy and PT of $14

Benchmark initiated its coverage of Kratos Defense & Security Solutions (NASDAQ: KTOS) with a Buy rating and a price target of $14 placed on the company's stock. In a research report published today, Benchmark stressed it believes the company's stock will outperform defense spending.

In the report, Benchmark states, "We are initiating coverage of KTOS with a BUY rating and a 12-month price target of $14. Our price target is based on a 7x FY12 EV/EBITDA multiple, in-line with the defense sector average... Kratos is expected to grow faster than overall defense spending; 10%-15% growth target."

On Monday, Kratos added 0.36% to its value to close the day at $11.19.