Kraken Robotics is initiated at a buy rating, citing robust revenue guidance, margin expansion, and favorable sector tailwinds. The company expects 2026 revenues of C$170 million, a 67% YoY increase, driven by defense and commercial demand. The Covelya acquisition, at 9.7x 2025E adjusted EBITDA, is seen as accretive, expanding product offerings, and customer base and potentially creating operational synergies.