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Kratos Drops 12% This Week as Greenland Tensions and Neutral Initiation Pressure Rally

Investor jitters followed a Greenland-related U.S.–Europe rift plus a new $99 Piper Sandler target below the share price.

Overview

  • Kratos Defense & Security Solutions fell about 12% for the week, according to S&P Global Market Intelligence data reported by Yahoo Finance.
  • Shares slid after headlines on a U.S.–Europe dispute over Greenland raised concerns about potential reductions in European purchases of U.S. defense equipment, with the stock not fully recovering even after the flare-up eased.
  • Piper Sandler began coverage with a neutral rating and a $99 price target, below the roughly $115 trading level, which investors interpreted as a near downgrade that dented momentum.
  • Despite the pullback, the stock remains up roughly 234% over the past year and now trades at a price-to-sales ratio above 14 with a market capitalization near $19 billion.
  • Earlier in January, Goldman Sachs raised its target to $125 and Stifel lifted theirs to $134, citing strength in unmanned systems such as Valkyrie drones and progress in the MACH-TB hypersonic test program along with a constructive sector outlook.