Kraken Robotics: Tailwinds Are Too Strong To Ignore
Kraken Robotics is receiving a buy rating due to strong revenue growth, margin expansion, and favorable industry trends. The company forecasts 2026 revenues of C$170 million, a 67% year-over-year increase, driven by demand in defense and commercial sectors. Its acquisition of Covelya is considered accretive, enhancing product offerings and customer reach while offering operational synergies. Despite a premium valuation, the recent pullback in its forward P/S ratio presents an attractive entry point.
- ▪Kraken Robotics expects C$170 million in revenue for 2026, representing a 67% year-over-year increase.
- ▪The Covelya acquisition was made at 9.7x 2025E adjusted EBITDA and is expected to be accretive to growth and margins.
- ▪The deal expands Kraken’s product portfolio, customer base, and potential for operational synergies.
- ▪The stock trades at a forward P/S premium, but the recent valuation pullback improves its investment appeal.
- ▪Analyst initiation cites robust guidance, margin expansion, and strong sector tailwinds as key catalysts.
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