Kratos Defense & Security Solutions: The specialist in drones and hypersonic weapons is the new "Top Pick" of Cantor Fitzgerald analysts in the defense sector. The upside potential exceeds 30%.

The NATO countries have agreed to increase their defense spending from the current 2% to 5% of GDP by 2035. Of this, 3.5% will flow into key areas such as equipment, personnel, and operations, while the remaining 1.5% will be allocated to infrastructure and industrial capacities. US defense contractors are expected to benefit from this. BTIG analysts estimate that US companies' exports could reach USD 2.7 trillion by 2035, instead of the previously anticipated USD 1.4 trillion. A potential beneficiary could be Kratos Defense & Security Solutions...