On Wednesday, Truist Securities increased its stock price target for Leidos Holdings (NYSE:LDOS) to $165 from the previous target of $150, while maintaining its Buy rating for the company's stock. This adjustment comes in the wake of Leidos Holdings reporting a robust start to the year, which has also led to an upward revision of its full-year guidance.
The firm's analyst highlighted the company's performance, noting that the positive adjustment is a response to a strong quarterly report and the increased expectations for the full year. Leidos' ability to secure and manage new contracts due to its significant market presence was emphasized as a key factor in the firm's optimistic outlook.
Truist Securities has updated its earnings estimates for Leidos for the years 2024 and 2025, anticipating further details on the company's long-term trajectory during the upcoming Investor Day in June. The firm appears confident in Leidos' continued growth and its capacity to meet the revised targets.
Leidos Holdings, a defense contractor and information technology services provider, has been showing a solid performance that resonates with the investment firm's positive stance. The revised price target suggests that Truist Securities expects the stock to continue its upward movement.
Investors and market watchers will be looking forward to the June Investor Day for further insights into the company’s strategies and growth plans, as indicated by the analyst's comments. The event is expected to provide additional information that could potentially influence the company's stock performance going forward.
InvestingPro Insights
In light of Truist Securities' updated outlook on Leidos Holdings, current metrics from InvestingPro provide additional context to the company's financial health and stock performance. Leidos, with a market capitalization of $18.94 billion, has demonstrated a revenue growth of 7.24% in the last twelve months as of Q4 2023.
Despite a high P/E ratio of 96.53, the adjusted P/E ratio for the same period reflects a more moderate 27.24, indicating a potentially more favorable investment evaluation when considering normalized earnings.
Investors might also note that Leidos has experienced a significant price total return of 26.87% over the last three months, aligning with Truist Securities' positive assessment. This momentum is further supported by the company's recent dividend growth of 5.56% and a consistent dividend payment history, having raised its dividend for 5 consecutive years.
For those looking for stability, Leidos' stock generally trades with low price volatility, which could be an attractive trait for risk-averse investors.
For further in-depth analysis and additional InvestingPro Tips, including the company's net income expectations and insights into its trading multiples, visit https://www.investing.com/pro/LDOS. There are 19 additional tips available on InvestingPro, which can offer more comprehensive guidance. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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