Wedbush Initiates Coverage of AVAV, KTOS with Outperform Ratings, $250 and $85 Price Targets Overnight

According to Wedbush, AeroVironment (AVAV) and Kratos Defense & Security Solutions (KTOS) stocks gained overnight after the firm initiated coverage with Outperform ratings and $250 and $85 price targets respectively, implying 51% and 70% upside potential.

Wedbush cited AVAV's expansion across unmanned systems, land, maritime, space and cyber capabilities as a competitive advantage, while describing KTOS as a strategically positioned supplier of defense software and components across hypersonic weapons, missile defense and space technologies. Both stocks edged up approximately 0.6% in overnight trading heading into Wednesday, though AVAV and KTOS have declined 34% and 31% year-to-date respectively.