Leidos Holdings: Don’t bite off more than you can chew - Downgrade to Neutral, cut PO to $125

研报英文原文证据摘录

Leidos Holdings: Don’t bite off more than you can chew - Downgrade to Neutral, cut PO to $125

Accessible version

Leidos Holdings

Don’t bite off more than you can chew -

Downgrade to Neutral, cut PO to $125

Rating Change: NEUTRAL | PO: 125.00 USD | Price: 113.58 USD

Healthcare pressure offsets defense opportunities 17 June 2026

We are downgrading Leidos (LDOS) to Neutral from Buy rating to reflect the increasing Equity

pressure across the once blooming healthcare portfolio. We continue to recognize the

value of LDOS’ defense portfolio and its strong alignment to DoW’s priorities across

Key Changessmall cruise missiles, C2, counter UAS, hypersonics and unmanned maritime solutions.

However, we don’t think investors will give credit for full value of the opportunities until (US$) Previous Current

the results begin to materialize. We are cutting our PO to $125 from $200. See inside. Inv. Opinion B-1-7 B-2-7

Inv. Rating BUY NEUTRAL

Price Obj. 200.00 125.00WTH: What the Health?

LDOS’ managed healthcare business has been a standout performer for some time,

driven by its DHMSM and VBA MDE work. However, we see downward pressure in the Mariana Perez Mora

Research Analyst

near term as 1) DHA works on trying to work directly with suppliers in the DHMSM BofAS

maintenance phase and 2) MDE upcoming recompete weighs on Leidos’ future share +1 646 855 5696 mariana.perezmora@bofa.com

and pricing power. While we anticipate LDOS will be able to leverage its existing

Ronald J. Epstein

capabilities and network to win business in managed health (like recent Military Research Analyst

OneSource), increasing competition in the healthcare sector limits future upside. BofAS +1 646 855 5695

r.epstein@bofa.com

Do the puzzle pieces fit together? It must prove ENTRUST Alexander Preston