William Blair uncovers $918M contract renewal for Leidos

William Blair says the firm’s contract tracker recently picked up that Leidos renewed and upsized its existing Department of Homeland Security $684M, six year classified networking services modernization contract. The new contract, which has not been formally announced, is worth $918M over seven years and is known as HEITS, the analyst tells investors in a research note. Blair says the renewal should “contribute nicely” to Leidos’s Q3 bookings in the final quarter of the federal government’s fiscal year. It should enable Leidos to maintain its recent mid-single-digit organic revenue growth, the firm adds. It keeps an Outperform rating on the shares.