Kratos Defense & Security Solutions (NASDAQ: KTOS) stock surged 9.7% following analyst coverage with a buy rating and $150 price target. Sales grew 26% YoY in fiscal Q3 2025, with 36% growth in drone sales. Profitable in Q3, the company’s free cash flow remains negative. Analysts project strong sales growth.

Despite positive sales growth, Kratos stock may face challenges reaching the $150 target. The P/E ratio would exceed 400x at the current price if earnings remain at $0.20 per share. The Motley Fool Stock Advisor did not list Kratos as one of the top 10 stocks for investors.

Investors should consider Kratos’s financials and long-term growth potential before buying stock. The company’s profitability and free cash flow situation may impact its ability to reach the projected price target despite strong sales growth and analyst enthusiasm.

Read more at Yahoo Finance: Why Kratos Defense Stock Powered Higher Today