Goldman Sachs has launched broad research coverage of U.S. defense and space companies, saying rising demand for drones, launch services and space-based intelligence is creating "significant top-line growth" opportunities across the sector. The bank upgraded Kratos Defense & Security Solutions to Buy from Neutral and set a $52 price target, pointing to the company’s established positions in unmanned aerial systems, propulsion and C5ISR technologies as catalysts for margin expansion and stronger cash generation. New coverage began with Rocket Lab and Planet Labs at Neutral, with price targets of $27 and $4.60, respectively. Virgin Galactic was also rated Neutral with a $3 target. Goldman assigned Buy ratings to CAE, at a $33 target, and Leonardo DRS, at a $49 target, citing favourable exposure to training, simulation and defense electronics markets. Goldman’s move underscores heightened investor interest in firms supplying autonomous systems and space infrastructure as Western governments step up spending to counter emerging security threats.