Leidos price target lowered to $205 from $230 at Wells Fargo

Wells Fargo lowered the firm’s price target on Leidos (LDOS) to $205 from $230 and keeps an Overweight rating on the shares. The firm sees pressure on federal spending from here, but risk-reward looks attractive with 40%-50% upside in status quo spending scenario. Given cautious commentary from Wells’ D.C. contacts, the firm now assumes flat spending for both DoD O&M and civil discretionary off of a FY25 budget, which is now mostly fully baked.