Leidos upgraded to Outperform at RBC on continued Health Services strength

As previously reported, RBC Capital analyst Ken Herbert upgraded Leidos (LDOS) to Outperform from Sector Perform with a price target of $210, up from $180. The firm’s bullish thesis is underpinned by continued strength and execution in Leidos’ Health Services business, strong defense portfolio positioning, increased confidence under CEO Tom Bell and the revised strategic direction, the analyst tells investors in a research note. Despite the recent strength in the stock, the beat-and-raise setup will persist, with DOGE risks likely having troughed, the firm added.