Jefferies Names Top Defense Technology & Space Stocks to Watch

Investing.com -- Jefferies has identified five stocks positioned to benefit from rising demand in defense technology and space infrastructure, highlighting companies with exposure to unmanned systems, missile defense, and commercial space projects.

The firm’s rankings focus on companies serving military, space, and security markets, with growth drivers ranging from autonomous systems to next-generation space stations.

1. Kratos Defense & Security Solutions

Jefferies named Kratos as its top defense-tech pick, citing the company’s exposure to C5ISR, electronic warfare, missile defense, satellite communications, and autonomous systems. The firm views these segments as critical areas of defense spending.

Kratos Defense & Security Solutions reported first-quarter fiscal 2026 revenue of $371 million and adjusted earnings of $0.16 per share, beating consensus estimates. The company also announced it selected Odon, Indiana, as the site for a new hypersonic test facility.

1. AeroVironment

The company has exposure to some of the fastest-growing defense categories, including unmanned aircraft, loitering munitions, counter-drone systems, and precision strike weapons. Management’s long-term outlook points to strong growth across core businesses. The Uncrewed Aircraft Systems revenue target stands at about $90 million, up 50% from the prior outlook. Counter-UAS and Precision Strike revenue is targeted at about $158 million, up 21% year-over-year. Jefferies has a Buy rating and sees roughly 89% upside versus its price target.

In a recent development, AeroVironment was awarded a $117.3 million contract by the U.S. Army to supply unmanned aircraft systems. The company also received a $20.2 million government investment to expand its Huntsville, Alabama facility for counter-drone missile production.

1. Voyager Technologies

Jefferies highlights four major drivers for Voyager. The Starlab opportunity is valued at about $18 per share, with Voyager serving as a key participant in the Starlab commercial space station project. The company is also positioned as a second-source supplier in the SM-3 missile program, supporting missile-defense frameworks.

1. Cadre Holdings

Cadre supplies personal protection, law-enforcement, military, and first-responder equipment. Jefferies expects growth to accelerate in 2027, forecasting more than 4% organic growth, with roughly 3 percentage points coming from a General Dynamics European Land Systems contract win. Jefferies price target stands at $40, versus about $31 share price at the time of the report.

Cadre Holdings announced first-quarter 2026 earnings of $0.05 per share on revenue of $155.4 million, falling short of analyst forecasts. Separately, its subsidiary Safariland was selected as a provider for a five-year FBI armor contract valued at up to $61 million.

1. Firefly Aerospace

Firefly is evolving from a launch company into a broader space infrastructure provider. Jefferies projects revenue rising from about $160 million in 2025 to roughly $1.3 billion in 2028 and over $2 billion by 2030. The firm noted one of the highest projected growth rates in Jefferies’ entire aerospace and defense universe.

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