Leidos price target lowered to $105 from $112 at RBC Capital

RBC Capital analyst Ken Herbert lowered the firm’s price target on Leidos to $105 from $112 and keeps a Sector Perform rating on the shares. While the company topped expectations in Q4 on strong margins in its Defense and Civil segments, the "conservative" 2023 guide was below estimates with timing as the key risk for revenues, the analyst tells investors in a research note. The firm adds that it expects sentiment on the stock to be impacted by the political uncertainty around the FY24 defense budget and more visibility on 2023 upside.