Leidos earnings selloff brings buying opportunity, says Citi

Citi analyst Jason Gursky lowered the firm’s price target on Leidos to $107 from $124 and keeps a Buy rating on the shares. The company’s Q1 print "was messy," with revenue timing, supply chain issues, a manufacturing transition, and higher development costs hitting the Civil segment, masking decent performance in Health and Defense, the analyst tells investors in a research note. However, the firm sees a buying opportunity on the share selloff, believing the "hiccups are likely to prove transitory."