Leidos initiated with an Equal Weight at Wells Fargo

Wells Fargo initiated coverage of Leidos (LDOS) with an Equal Weight rating and $165 price target The firm expects the company’s growth to be “challenged” by its diversification. It also sees risk Leidos’ “high-margin” health work. Health now contributes half of total company profit and will likely be a “drag from here,” the analyst tells investors in a research note.