Why Kratos Stock Dropped Again Today
"At a valuation north of 360 times earnings, and with cash still burning, I see no compelling reason to own Kratos stock today."
That basically summed up my thinking last week on Kratos Defense Security (NASDAQ: KTOS), after reporting a pro forma earnings beat -- but GAAP earnings less than half its pro forma income.
This morning, investment banker Jefferies disagreed with my take, reiterating a "buy" rating on Kratos. But even Jefferies is starting to have second thoughts about this defense stock, and it is lowering its price target by $5 to $80 a share.
Source Fool.com
