Leonardo DRS price target raised to $30 from $27 at Truist

Truist analyst Michael Ciarmoli raised the firm’s price target on Leonardo DRS to $30 from $27 and keeps a Buy rating on the shares as part of a broader research note previewing Q2 results in the Aerospace & Defense sector. The setup for commercial aero OEM will be challenged amid well-telegraphed supply chain and production issues, though the aero aftermarket group should see “another strong showing”, with upside to consensus expectations set to unfold, the analyst tells investors in a research note. For the company, Truist warns that while its free cash flow will likely be modestly negative in Q2, its management should reaffirm its 2024 free cash flow conversion target of 80% and should be in position to reaffirm and possibly increase its outlook.