Credit Suisse Upgrades Leidos Holdings (LDOS) to Outperform
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Credit Suisse upgraded Leidos Holdings (NYSE: LDOS) from Neutral to Outperform with a price target of $57.00 (from $40.49).
Analyst Robert Spingarn commented, "Government services names began to gain traction over a year ago as the market correctly anticipated the inflection to positive organic growth that is finally occurring now. The recent run in defense names before the election (as defensive vehicles) and since the Trump victory (as offensive vehicles) has continued to re-rate the group upward. And while the favorable tide can continue to lift all names in the group, we see relative upside for LDOS from the additional levers enabled by the IS&GS acquisition, from cost synergies, deleveraging, and potentially from revenue synergies. For investors with a longer-term view, much of the above falls into place in 2019. We apply an EV/EBITDA valuation methodology to our 2019 estimates, and discount back to arrive at our new 12-month TP of $57."
The firm's 2016/'17/'18 estimates adjust to $3.59/$3.24/$3.57. We also introduce 2019 to capture the synergy benefit that is a key driver behind the IS&GS acquisition.
Shares of Leidos Holdings closed at $48.36 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Raises Rating on CBOE Holdings (CBOE) to 'Overweight'; Analyst Thinks Bats Technology Will Drive Greater Trading Activity
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
- Cowen Cuts Price Target on Workday (WDAY) Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Related EntitiesCredit Suisse, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!