Barclays Analyst Raises Leidos Holdings Price Target by 10.3% after Q1 Beat

Barclays's David Strauss raised their price target on Leidos Holdings (NYSE: LDOS) by 10.3% from $145 to $160 on 2024/05/06. The analyst maintained their Strong Buy rating on the stock.

Leidos Holdings, a tech-enabled services and solutions provider to the national security sector, recently reported its first-quarter earnings for 2024. The company exceeded expectations and provided optimistic guidance for the full year.

In Q1 2024, Leidos Holdings reported earnings per share (EPS) of $2.29, surpassing the Zacks Consensus Estimate of $1.65 and showing a significant increase of 55.8% compared to Q1 2023's EPS of $1.47. The company also reported revenue of $3.98 billion, beating the Zacks Consensus Estimate of $3.80 billion and showing a 7.5% year-over-year increase compared to Q1 2023's revenue of $3.7 billion. The EBITDA margin for the quarter was 12.3%.

For the full year 2024, Leidos Holdings provided guidance of EPS between $8.40 and $8.80, with revenue projected to be in the range of $16 billion to $16.4 billion. The company expects an EBITDA margin in the mid-to-high 11% range. CEO Thomas Bell expressed confidence in the company's performance, stating, "Our strong start to the year demonstrates the team's ability to deliver for its employees, customers, and shareholders."

The positive earnings report and optimistic guidance prompted Barclays analyst David Strauss to raise their price target on Leidos Holdings. Alongside the price target increase, Strauss maintained their Strong Buy rating on the stock. In addition to Leidos Holdings, Strauss also made price target adjustments for other companies in their portfolio. They raised the price target on Woodward Inc by 25%, from $140 to $175, and maintained a Hold rating. They also raised the price target on Ati Inc by 27.3%, from $55 to $70, and maintained a Strong Buy rating. Furthermore, Strauss raised the price target on Howmet Aerospace Inc by 30.8%, from $65 to $85, and maintained a Strong Buy rating.

According to WallStreetZen, 75% of top-rated analysts currently rate LDOS as a Strong Buy or Buy, while 25% see it as a Hold. No analysts recommend or strongly recommend selling the stock. The consensus forecast among analysts is that LDOS's upcoming year will deliver earnings per share (EPS) of $5.61. This would represent a significant 137.8% increase on a year-over-year basis.

Since Leidos Holdings' latest quarterly report on April 30, 2024, the stock price has increased by 1.7%. Year-over-year, the stock has seen an impressive rise of 80.4%. During this period, LDOS has outperformed the S&P 500, which has experienced a 25.2% increase.

Barclays analyst David Strauss, who raised the price target on Leidos Holdings, is ranked in the top 14% out of 4,575 Wall Street analysts by WallStreetZen. With an average return of 13.3% and a 70% win rate, Strauss specializes in the Industrials and Technology sectors.

Leidos Holdings, Inc., founded in 1969 and headquartered in Reston, VA, offers tech-enabled services and solutions to the national security sector, including the U.S. Intelligence Community, the U.S. Department of Defense, NASA, and other federal and commercial customers in the national security industry. The company's strong performance and positive outlook position them well for future growth and value creation.

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