Analyst Initiates Coverage on Leidos (NYSE: LDOS) with Outperform Rating

Font: Financial Modeling Prep  • May 27, 2026

• Leidos (NYSE: LDOS) received an Outperform rating and a $165.00 price target from BNP Paribas, signaling strong analyst confidence in the defense technology stock.
• Despite recent contract wins, the stock appears potentially undervalued, trading at $131.65, well below its 52-week high of $205.77.
• The company secured significant government contracts, including IT modernization for the U.S. Department of State and a $2.7 billion deal for hypersonic weapons development with the U.S. Army.

An analyst at BNP Paribas has started covering Leidos (NYSE: LDOS) with an Outperform rating. This rating suggests the analyst believes the stock will perform better than the overall market. The analyst also set a price target of $165.00 for the company's shares. Leidos is a major American defense, aviation, and technology company that provides services to the U.S. government.

This positive outlook aligns with an article, as highlighted by Seeking Alpha, suggesting the market is mispricing the defense giant. With a current price of $131.65, the stock trades well below its 52-week high of $205.77. This gap could indicate that the stock's current price does not fully reflect its potential.

Recent business wins support a strong outlook for Leidos. The company secured four awards to help strengthen global IT operations for the U.S. Department of State. This contract involves modernizing the essential IT systems that American diplomats use around the world, improving cybersecurity and service reliability.

Additionally, Leidos signed a significant $2.7 billion contract with the U.S. Army, as highlighted by Zacks. This deal is to speed up the production of hypersonic weapons. The project combines two existing programs to simplify the manufacturing process and get the weapons deployed faster, showing the company's key role in national defense.

Despite this positive news, the market's reaction has been mixed. Following the army contract announcement, shares of Leidos fell nearly 2.8%. This reaction may support the idea that the company, with its market capitalization of approximately $16.56 billion, is currently undervalued by investors.