Leidos Holdings Inc. (NYSE:LDOS) is one of the best defense stocks in Goldman Sachs’ portfolio. The company’s revenue exposure is diversified across several end-markets, and it benefits from steady demand for systems solutions, IT, cyber, and logistics support from both defense and civil agencies.
On October 8, Leidos Holdings Inc. (NYSE:LDOS) announced the expansion of its two-decade-long partnership with Kazaeronavigatsia, the country’s air navigation service provider, through a long-term contract to modernize the nation’s air traffic control infrastructure. This contract includes work at four control centers and 21 towers across the country. While the company didn’t disclose the monetary value of the contract, it is well-positioned to benefit from the significant growth projected for air traffic volume in Kazakhstan in the coming years.
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Separately, on September 30, 2025, Truist Securities analyst Tobey Sommer raised the price target on Leidos Holdings Inc. (NYSE:LDOS) to $195 from $188 and reiterated a Buy rating ahead of the company’s third-quarter results on November 4. As part of this, Truist also previewed the Q3 results for other Government Services companies.
The analyst noted that this group of companies may face near-term volatility due to weaker book-to-bill ratios (B2Bs), a potential government shutdown (which has already occurred as of the time of writing this article), and delays in reaching a resolution on federal budgets. However, he believes these factors could create a good buying opportunity for long-term investors.
Sommer expects order growth and new contract awards to increase in the first half of 2026, with stronger organic growth anticipated between late 2026 and early 2027. Despite short-term political uncertainty, analysts at Truist remain positive on the medium-term outlook, citing an improving funding environment as opportunities under the Overseas Base Budget and Budget Activity (OBBBA) are rolled out.
Leidos Holdings Inc. (NYSE:LDOS) is a U.S. government technology and defense contractor. The company focuses on digital modernization, cybersecurity, logistics, and defense and mission systems for federal agencies, the military, and intelligence clients.
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Disclosure: None. This article is originally published at Insider Monkey.
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