William Blair analyst Louie DiPalma has maintained their neutral stance on LDOS stock, giving a Hold rating on October 20.
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Louie DiPalma has given his Hold rating due to a combination of factors impacting Leidos Holdings. The company has shown strong third-quarter results with a 6% organic growth, primarily driven by its defense and national security sectors. Despite these positive results and an increase in full-year margin and EPS guidance, there are challenges that temper enthusiasm for a more aggressive rating.
Leidos faces a 3% revenue headwind from government efficiency initiatives and the government shutdown, which could affect future growth. Additionally, while the funding environment is improving, the procurement of traditional IT systems remains inconsistent, suggesting that the stock may not see significant upward movement until these issues are resolved. These factors contribute to the decision to maintain a Hold rating, as the shares are expected to remain within a certain range until procurement normalizes.
In another report released on October 20, UBS also maintained a Hold rating on the stock with a $209.00 price target.
Based on the recent corporate insider activity of 126 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LDOS in relation to earlier this year.