Investing.com - Stifel initiated coverage on Leidos Holdings (NYSE: LDOS ) Monday with a Buy rating and set a price target of $178.00.

The research firm based its target price on an approximately 13-times 2026 estimated EV/EBITDA multiple, which aligns with Leidos’s three-year and historical average as well as the average multiple of its peer group.

Stifel identified several potential downside risks to its investment thesis, including unexpected federal budget disruptions and headwinds from slower-than-expected ramp-up of contract awards.

Additional risks noted in the analysis include staffing challenges that could impact Leidos’s ability to execute on contracts and growing competitive pricing pressure resulting from government initiatives.

Leidos Holdings, a major defense and information technology services provider, derives significant revenue from U.S. government contracts across defense, intelligence, and civilian agencies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.