Jefferies has released a focused list of five equities it believes stand to gain from growing expenditure in defense technology and commercial space infrastructure. The firm emphasized companies that serve military, security and space markets, pointing to demand drivers that include autonomous systems, missile defense and next-generation commercial space stations.
Below are the five companies Jefferies singled out and the firm-level rationales and financial detail provided for each.
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Kratos Defense & Security Solutions
Jefferies selected Kratos as its top defense-technology pick, highlighting the company’s involvement across multiple mission areas including C5ISR, electronic warfare, missile defense, satellite communications and autonomous systems. Those segments were identified by the firm as core areas attracting defense spending. Jefferies noted Kratos reported first-quarter fiscal 2026 revenue of $371 million and adjusted earnings of $0.16 per share, which topped consensus estimates. The company also announced it chose Odon, Indiana, as the site for a new hypersonic test facility.
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AeroVironment
Jefferies pointed to AeroVironment’s exposure to several fast-growing defense categories such as unmanned aircraft, loitering munitions, counter-drone systems and precision-strike weapons. Management’s long-term outlook from the company underpins the firm’s positive view. Jefferies cited updated revenue targets where Uncrewed Aircraft Systems revenue is expected to be about $90 million, a 50% increase from the prior outlook, and Counter-UAS and Precision Strike revenue is targeted at roughly $158 million, up 21% year-over-year. The analyst house rates AeroVironment a Buy and sees approximately 89% upside to its price target. Jefferies also noted recent contract and investment activity, including a $117.3 million award from the U.S. Army to supply unmanned aircraft systems and a $20.2 million government investment to expand the company’s Huntsville, Alabama facility for counter-drone missile production.
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Voyager Technologies
Voyager was highlighted for a set of distinct drivers Jefferies views as material to valuation. The firm placed an approximate $18-per-share value on the Starlab opportunity, where Voyager is positioned as a participant in the Starlab commercial space station project. In addition, Jefferies noted Voyager’s role as a second-source supplier in the SM-3 missile program, which ties the company into missile-defense frameworks.
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Cadre Holdings
Cadre supplies personal-protection, law-enforcement, military and first-responder equipment. Jefferies expects Cadre’s organic growth to accelerate in 2027, projecting more than 4% organic growth with roughly 3 percentage points attributable to a contract win from General Dynamics European Land Systems. The firm has set a price target of $40, versus a share price of about $31 at the time of the report. Cadre reported first-quarter 2026 earnings of $0.05 per share on revenue of $155.4 million, a result that fell short of analyst forecasts. Jefferies also noted that Cadre’s subsidiary Safariland was selected as a provider under a five-year FBI armor contract valued at up to $61 million.
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Firefly Aerospace
Jefferies described Firefly as evolving from primarily a launch company into a more comprehensive space-infrastructure provider. The firm projects a rapid revenue ramp for Firefly, from about $160 million in 2025 to roughly $1.3 billion in 2028 and in excess of $2 billion by 2030. Jefferies characterized Firefly as having one of the highest projected growth rates within its aerospace and defense coverage universe.
Collectively, the five names were chosen for their exposure to unmanned systems, missile-defense programs, satellite and communications capabilities, personal-protection and commercial space projects. Jefferies’ analysis emphasizes program participation, revenue targets and select contract awards as the principal foundations for the firm’s convictions.
Summary of Jefferies’ view
Jefferies presented a thematic investment case focused on the intersection of defense modernization and commercial space growth. The firm argued that companies participating in unmanned platforms, missile-defense supply chains, satellite communications and emerging commercial space station programs are positioned to capture meaningful demand over the next several years.