Despite Promises Unfulfilled, This Analyst Still Loves Kratos Defense & Security Stock
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
If nothing else, New York-based securities broker-dealer Drexel Hamilton deserves points for loyalty.
Five months ago, Drexel played a key role (as co-manager) in a stock offering that raised $75 million to fund Kratos Defense & Security Solutions' (NASDAQ: KTOS) continued development of jet-powered combat drones for the military. Three months ago, Kratos promised to use that money to help earn its first quarterly profit in nearly two years. Then last month, Kratos arguably broke that promise, informing investors that instead of turning a profit, it lost $0.07 per share in its fiscal second quarter.
Source: Fool.com
