Leidos Price Targets Slashed to $110 and $125 as Q1 Revenues Reach $4.40B
LDOS•Jefferies cut its Leidos price target to $110 from $140 and Bank of America trimmed its target to $125 from $200 over healthcare business pressures. Despite a 15% stock decline and an expected 8.4% EPS drop, Q1 revenues of $4.40 billion and new government AI contracts underpin 2.6% revenue growth forecasts.
1. Analyst Price Target Reductions
Jefferies lowered its target on Leidos to $110 from $140, and Bank of America cut its target to $125 from $200, highlighting concerns over potential healthcare business headwinds. These adjustments reflect a more cautious outlook despite Leidos’ diversified defense technology portfolio.
2. Stock Performance Trends
Leidos shares have fallen nearly 15% over a recent period, underperforming the S&P 500, and closed a recent session down 2.13%. This downturn underscores investor sensitivity to downward adjustments in future growth expectations.
3. Operational Strength and Contracts
Leidos continues to expand its AI, cybersecurity and digital modernization offerings, securing multiple major government defense and intelligence contracts. These wins contributed to Q1 revenues of $4.40 billion, up from prior quarters, bolstering near-term revenue visibility.
4. Financial Outlook and Guidance
Next quarter EPS is projected at $2.94, an 8.4% year-over-year decline, while revenue is forecast to rise 2.6% to $4.36 billion. The company raised its full-year guidance after strong Q1 performance, signaling confidence in sustained contract pipeline growth.
