Leidos stock gets price target boost on strong quarter

Truist Securities raised its stock price target on Wednesday Leidos Holdings (NYSE: ) raised its target to $165 from $150 previously, while maintaining a buy rating on the company's stock. The change comes after Leidos Holdings reported a strong start to the year, which also led to an increase in its full-year guidance.

The company's analysts highlighted the company's performance, noting that the positive revision was in response to a strong quarterly report and increased full-year estimates. Due to its significant market presence, Leidos' ability to secure and manage new contracts was highlighted as a key factor in the company's optimistic outlook.

Truist Securities updated its 2024 and 2025 profit forecasts for Leidos and expects to reveal more details about the company's long-term trajectory during its upcoming June investor day. The company appears confident in Leidos' continued growth and its ability to meet revised targets.

Leidos Holdings, a defense contractor and information technology services provider, has been showing solid performance, which resonates with the investment firm's positive stance. The revised price target indicates that Truist Securities expects the stock to continue rising.

As analysts' comments suggest, investors and market watchers will be looking forward to the June Investor Day to learn more about the company's strategy and growth plans. The event is expected to provide additional information that could impact the company's future stock performance.

Investment Professional Insights

Given Truist Securities' latest outlook on Leidos Holdings, InvestingPro's current metrics provide more context on the company's financial health and stock performance. Leidos has a market capitalization of $18.94 billion and revenue grew 7.24% in the trailing 12 months to the fourth quarter of 2023.

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Although the P/E ratio is 96.53, the adjusted P/E ratio for the same period is 27.24, suggesting that the investment assessment may be more favorable when normalized earnings are considered.

Investors may also note that Leidos has delivered a significant price total return of 26.87% over the past three months, consistent with Truist Securities' positive assessment. This momentum is further supported by the company's recent 5.56% dividend growth and consistent dividend payment history of five consecutive years of dividend increases.

For those looking for stability, Leidos shares typically have low price volatility, which may be an attractive feature for risk-averse investors.

For further in-depth analysis and other InvestingPro tips, including the company's net profit expectations and insights on its trading multiples, visit https://www.investing.com/pro/LDOS. There are 19 additional tips on InvestingPro for more comprehensive guidance.To get these valuable insights, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.

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