Leidos Holdings, Inc.
Leidos Holdings, Inc. (NYSE: LDOS) provides scientific, engineering, system integration, technical services, and solutions to the US Department of Defense, the Intelligence Community, and the British Ministry of Defense, among others.
Why Should Investors Exit?
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
LDOS' share price has fallen 18.96% in the past twelve months and is currently leaning towards the lower end of its 52-week range of USD 82.75 to USD 108.83. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 78.10.
Considering the company's leveraged balance sheet, top-line stress, operating at shallow margins, and current valuation, we recommend a "Sell" rating on the stock at the closing price of USD 87.36 as of February 14, 2022.
Three-Year Technical Price Chart (as of February 14, 2022). Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.