On Tuesday, Truist Securities adjusted its target price Leidos Holdings (NYSE:), a defense, aerospace, information technology, and biomedical research company. The company raised its price target to $205.00 from $175.00 previously while maintaining a buy rating on the stock.
The update follows Leidos Holdings’ recent announcement of strong financial results and higher guidance for 2024. The company also gave preliminary views on its 2025 vision, suggesting an EBITDA of around 2.10 billion or more. This estimate shows a margin of over 12.2%, surpassing the previous market expectation of 1.98 billion rands by 11.6%.
An analyst at Truist Securities expressed confidence in the price target, saying, “We are raising our PT to $205 from $175 following LDOS reporting strong results and raising guidance for 2024.” The company’s decision reflects a positive analysis of Leidos’ financial performance and future prospects.
Additionally, the analyst reaffirmed a buy rating on Leidos Holdings, indicating continued optimism about the company’s stock performance. Adjustments to the firm’s estimates were made as a result of new information provided by Leidos about its future financial outlook.
Leidos Holdings’ revised guidance and revised price target from Truist Securities come as important indicators of the company’s strong position and expected performance in the coming years. The target price increase reflects the firm’s desire for Leidos’ continued success in its various operating sectors.
In other recent news, Leidos Holdings Inc. reported an increase in third-quarter earnings, significantly exceeding analyst expectations and leading to an upward revision of its full-year guidance. The security and technology services provider recorded adjusted earnings per share of $2.93, well beating analyst consensus of $2.01. Revenue for the quarter came in at $4.19 billion, beating estimates of $4.07 billion and marking a 7% year-over-year increase.
Leidos CEO, Tom Bell, attributed the strong performance to improvements in all segments, which led to record revenue and adjusted EBITDA, strong earnings growth, and strong cash flow. The company’s adjusted EBITDA margin reached a record high of 14.2%, up from 11.5% in the same quarter last year.
Looking ahead, Leidos has raised its full-year guidance, now expecting FY2024 EPS of $9.80-$10.00, up from the previous analyst consensus of $9.08. Full-year revenue is estimated at $16.35-16.45 billion, above the consensus estimate of $16.3 billion.
The company also reported strong bookings of $8.1 billion this quarter, bringing the total backlog to $40.6 billion. In another recent development, Leidos announced a 5.3% increase in its quarterly dividend to $0.40 per share.
InvestingPro Insights
Leidos Holdings’ strong financial performance and positive outlook, as highlighted in the article, are further supported by real-time data from InvestingPro. The company’s market capitalization reaches $25.08 billion, indicating its significant presence in the Technology Services industry. Leidos has shown impressive revenue growth, with a 7.86% increase in the last twelve months from Q2 2024, consistent with the strong financial results mentioned in the article.
InvestingPro Tips reveals that Leidos has increased its dividend for 6 consecutive years, indicating a commitment to shareholder returns. This is especially noteworthy given the company’s strong financial performance and increased guidance for 2024. Additionally, the stock is trading near its 52-week high, confirming the positive sentiment expressed in the analyst’s revised estimate.
The company’s profitability is underpinned by adjusted operating income of $1.596 billion over the past twelve months, and an operating margin of 9.97%. This strong financial base supports the analyst’s view and the price increase target.
For investors looking for a comprehensive analysis, InvestingPro offers 14 additional tips for Leidos Holdings, providing in-depth information about the company’s financial health and market conditions.
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