UPDATE: Benchmark Downgrades Kratos Defense & Security Solutions from Buy to Hold
Benchmark downgraded Kratos Defense & Security Solutions (NASDAQ: KTOS) from a Buy to a Hold rating and lowered its price target to $5.
Benchmark commented, “Q2FY12 revenue and pro forma EPS came in at $219.8 million and $0.06 vs. a consensus revenue estimate of $226 million and our pro forma EPS estimate of $0.09. Total EBITDA in the quarter was $24.3 million vs. a consensus $25 million estimate. Revenue grew 75% y/y primarily from the acquisitions of Integral Systems, SecureInfo, and the acquired critical infrastructure business; EBITDA margin was 11.3%, up 100 bps from last year from a more favorable revenue mix.”
Kratos Defense & Security Solutions closed at $5.04 on Friday.
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