
Leidos Hld (LDOS) Stock Forecast & Price Target
Leidos Hld (LDOS) Analyst Ratings
Bulls say
Leidos Holdings Inc. has demonstrated robust financial performance across its segments, particularly with an 8% year-over-year increase in national security revenues, totaling $2.02 billion, driven by contract awards and on-contract growth in defense IT and mission support. The company’s Health & Civil segment has also seen improved margins due to increased exam volumes, showcasing the scalability of its operations as a key margin driver. Additionally, Leidos is poised for growth that outpaces federal budget spending by focusing on high-demand areas such as IT modernization, healthcare, cybersecurity, and advanced defense technologies, with impressive EBIT margin improvements from 14.5% in 2023 to expected levels of 24.3% in 1H25.
Bears say
Leidos Holdings Inc. faces a negative outlook primarily due to anticipated significant margin contraction in the second half of 2025, as indicated by the company's guidance, which could lead to reduced investor sentiment. Additionally, the company may experience declines in its higher-margin managed health services segment due to factors such as the entry of a new provider for veterans exams and potential decreases in medical exam volumes. Legal challenges to contract wins and uncertainties surrounding future defense spending amid recent stimulus measures further exacerbate the risks associated with the company's margins and overall financial performance.
This aggregate rating is based on analysts' research of Leidos Hld and is not a guaranteed prediction by Public.com or investment advice.
Leidos Hld (LDOS) Analyst Forecast & Price Prediction
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