BNP Paribas Gives Leidos $165 Target After $2.7B Hypersonics Deal
LDOS•BNP Paribas initiated coverage of Leidos with an Outperform rating and a $165.00 price target, highlighting its recent $2.7 billion Army hypersonic weapons contract and IT modernization awards. The stock trades at $131.65, well below its 52-week high of $205.77, suggesting potential undervaluation.
1. Coverage Initiation and Price Target
BNP Paribas started coverage of Leidos with an Outperform rating and set a $165.00 price target, citing the company's strong defense technology portfolio and growth prospects.
2. Major Government Contracts
Leidos secured a $2.7 billion contract with the U.S. Army for hypersonic weapons development and won four IT modernization awards for the U.S. Department of State, bolstering its defense and cybersecurity services.
3. Market Reaction and Valuation
Despite these wins, shares fell 2.8% following the Army deal announcement. Trading at $131.65, the stock remains well below its 52-week high of $205.77 and a market capitalization of approximately $16.56 billion, indicating potential undervaluation.
