San Diego’s Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) won a contract that could be worth up to $7.92 billion over the next five years from the Naval Surface Warfare Center at Dahlgren, Va. The indefinite delivery, indefinite quantity contract went to Kratos’ defense and rocket support services division.
The announcement of the contract helped push Kratos stock to a 52-week high of $9.16 per share after trading opened Monday morning on Wall Street. By mid-morning, it had fallen below $8, but that was still nearly 10 percent ahead of Friday's closing price.
An article last week in Barron’s magazine suggested that Kratos, whose stock price slumped late last year because of the federal budget sequester and government shutdown, could see its value rise by as much as 50 percent this year.