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Leidos Stock Continues to Face Pressure Over Uncertainty of Health, Defense Portfolios, RBC Capital Markets Says

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-- Leidos (LDOS) posted a Q1 beat but uncertainty into 2027 over the health and defense portfolios continue to weigh on the stock, RBC Capital Markets said in a Tuesday research report.

The health segment continues to normalize and margins remain robust as Veterans Affairs examination volumes are expected to remain elevated in 2026 as the agency focuses on burning backlog. Leidos is under contract to provide medical disability exams for the VA, but the company's contract awards and backlog visibility will take time to mature, analysts wrote.

Leidos is making solid investments to position itself for market growth in 2027, but near-term outlook is likely to remain clouded, which will be an overhang on the stock, according to the note.

The brokerage said it reiterated its outperform rating on the stock and cut its price target to $180 per share from $215.

Price: $130.22, Change: $-6.97, Percent Change: -5.08%

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