In a report released today, Ronald Epstein from Bank of America Securities reiterated a Buy rating on Leonardo Drs, with a price target of $50.00.
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Ronald Epstein has given his Buy rating due to a combination of factors that highlight Leonardo DRS’s strategic positioning and growth potential in the defense sector. The company is well-placed to benefit from its expanding role in naval programs and key defense priorities, particularly as shipbuilding trends favor outsourcing. This positions DRS to capture more content in critical areas such as counter-unmanned aircraft systems (cUAS) and air defense, aligning with global defense focuses.
Furthermore, DRS’s Integrated Mission Systems segment has demonstrated significant revenue growth, driven by demand for force protection and air defense solutions. The company’s strong backlog and robust bookings underscore its ability to capitalize on these opportunities. Additionally, improvements in naval electric power and propulsion programs, along with easing germanium supply constraints, further support the positive outlook. These factors collectively contribute to Epstein’s confidence in DRS’s potential for continued growth and success in the defense industry.
In another report released on October 30, BTIG also reiterated a Buy rating on the stock with a $50.00 price target.