Stifel downgraded Leidos (LDOS) to Hold from Buy with an unchanged price target of $220. The company has been executing “exceptionally well” on bookings, organic growth, and margins, the analyst tells investors in a research note. However, the firm sees a moderation of growth from Leidos’ “high-margin” Department of Veterans Affairs compensation and pension medical exams as a challenge in 2026. This will hold back the stock, contends Stifel. While earnings from this “key contract” may not deteriorate as much as some worry, it will likely take time for Leidos to prove this sustainability, the firm says.
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