Kratos And Seagate Just Announced A Partnership – A Look At The Key Highlights

Kratos CEO Eric DeMarco said the partnership would give defense customers an additional option for critical launch and testing missions, with offshore platforms providing greater operational flexibility.

• Seagate Space has signed its first construction contract for Gateway, advancing the platform into physical construction ahead of future operations.
• The companies will continue work on construction, integration and readiness activities ahead of Kratos' planned 2027 mission.
• Barclays cut its Kratos price target to $80 from $90 and maintained an ‘Overweight’ rating, according to The Fly.

Kratos Defense & Security Solutions (KTOS) announced on Tuesday that it had signed a long-term agreement with Seagate Space to use its Gateway offshore launch platform, with the first mission planned for 2027 and multiple additional launches anticipated in subsequent years.

“Kratos’ agreement with Seagate Space creates an important new pathway for supporting our customers’ evolving launch and test requirements,” said Dave Carter, President of Kratos Defense & Rocket Support Services.

KTOS shares traded 2.6% lower at the time of writing.

Gateway Platform To Support Defense Launch And Testing

 plans to initially use the Gateway platform for defense-related launch and target missions. The companies expect the partnership to support future operations involving hypersonic testing, ballistic-missile targets, responsive launch capabilities, and other national security missions.

The platform is part of Seagate Space's Gateway series of modular, mobile offshore facilities designed to complement existing land-based launch sites and test ranges. It is intended to accommodate government and commercial launch, testing, and recovery missions.

Carter said the platform could provide customers with expanded operating locations and more responsive access to mission-relevant test environments.

Seagate Space Begins Gateway Construction

The agreement comes as Seagate Space has executed its first construction contract for a Gateway platform, moving the project into physical construction and toward operational readiness.

The companies will continue work on construction, integration and readiness activities ahead of Kratos' planned 2027 mission.

Kratos President and CEO Eric DeMarco said the partnership would give customers another option for critical launch and test missions, with offshore infrastructure offering greater flexibility and operational choice.

Barclays Sees 20% Revenue Growth In FY27

Separately, Barclays lowered its price target on Kratos to $80 from $90 while maintaining an ‘Overweight’ rating following the company's third-quarter results, according to The Fly.

The analyst said Kratos' merchant-supplier strategy is playing out, with fiscal 2027 revenue expected to grow by 20%. The forecast includes conservative assumptions, the analyst noted.

Twenty-four out of 25 analysts covering the stock rate it ‘Buy’ or ‘Strong Buy’, and one rates it ‘Hold’, according to Koyfin. Their 12-month price target ranges from $46 to $145, with an average of $79.64.

How Retail Views KTOS

On Stocktwits, retail sentiment for the stock remained in ‘bullish’ territory amid ‘high’ message volume over the past 24 hours.

KTOS shares have dropped over 52% year-to-date.

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