Canaccord Genuity analyst Austin Moeller has maintained their bullish stance on DRS stock, giving a Buy rating yesterday.
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Austin Moeller has given his Buy rating due to a combination of factors including Leonardo DRS’s strong financial performance and strategic positioning. The company reported a significant increase in revenues and adjusted EBITDA, driven by high demand across various product lines such as counter-unmanned aerial systems and electric power and propulsion technologies. Despite some margin contraction due to increased R&D investments and program delays, the overall financial outlook remains positive.
Furthermore, Leonardo DRS achieved record bookings growth, significantly boosting its backlog, which provides a solid foundation for future revenue. The management’s confidence in maintaining a robust bookings-to-billings ratio and their strategic investments in R&D to align with evolving defense priorities further support the Buy rating. These elements, combined with a tightened guidance range indicating continued growth, underscore the company’s potential for sustained financial success.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $45.00 price target.