Kratos Defense & Security Solutions Inc. (KTOS) stock hit a 21-year high on Thursday, surging past $112, on momentum around its key defense projects and continued government support for emerging military technologies.

Additionally, Canaccord lifted its price target on the stock from $74 to $120 and maintained a 'Buy' rating, according to TheFly.

The boost comes after Kratos revealed it had secured a Phase 1 contract under the U.S. Navy's“Project Anaconda,” which aims to modernize the AN/SPY-1 radar system. The full scope of the contract spans multiple phases and could reach a total value of $175 million, noted Canaccord.

Kratos will spearhead Phase 1 of a Navy project by bringing together a team to help set up a new facility at the Naval Surface Warfare Center

(NSWC) Crane for maintaining and testing AN/SPY-1 radar systems. The team will also develop repair and upgrade processes for key radar components, and use advanced technologies like AI and digital engineering for sustainment.

At the time of writing, Kratos Defense & Security stock pared some gains and traded over 1% higher. On Stocktwits, retail sentiment around the stock jumped to 'bullish' from 'neutral' territory the previous day amid 'high' message volume levels. 

Canaccord sees further upside potential in the stock, citing the company's involvement in advanced weapons systems and military programs. Despite recent gains in the share price, the firm maintains that Kratos still has room to grow as defense funding priorities continue to shift toward next-gen capabilities.

According to the firm, the initiatives driving investor optimism include Kratos' involvement in MACH-TB, a hypersonic testing program. Additionally, the company is working closely with the U.S. Navy and Air Force on the Collaborative Combat Aircraft effort.

Kratos Defense stock has gained over 304% in 2025 and over 330% in the last 12 months. 

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