Leonardo DRS (NASDAQ:DRS) Price Target Raised to $53.00

Leonardo DRS (NASDAQ:DRS) had its target price hoisted by analysts at JPMorgan Chase & Co. from $48.00 to $53.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s price target would indicate a potential upside of 16.42% from the company’s previous close.

DRS has been the subject of a number of other research reports. Weiss Ratings upgraded Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, July 23rd. Canaccord Genuity Group raised their target price on Leonardo DRS from $52.00 to $54.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Wall Street Zen upgraded Leonardo DRS from a “hold” rating to a “buy” rating in a research report on Sunday, May 10th. Finally, Truist Financial raised Leonardo DRS to a “strong-buy” rating in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $53.60.

Leonardo DRS Stock Down 0.2%

Shares of DRS stock traded down $0.10 during trading hours on Friday, reaching $45.52. 304,821 shares of the company’s stock were exchanged, compared to its average volume of 1,122,493. Leonardo DRS has a 1 year low of $32.43 and a 1 year high of $50.59. The stock has a market cap of $12.14 billion, a PE ratio of 42.59, a PEG ratio of 3.36 and a beta of 0.36. The company has a current ratio of 1.86, a quick ratio of 1.52 and a debt-to-equity ratio of 0.05. The stock’s fifty day moving average price is $45.65 and its two-hundred day moving average price is $43.90.

Leonardo DRS (NASDAQ:DRS) last released its earnings results on Thursday, July 30th. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.08. The firm had revenue of $913.00 million for the quarter, compared to the consensus estimate of $903.27 million. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The firm’s revenue was up 10.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.23 EPS. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. Research analysts predict that Leonardo DRS will post 1.3 EPS for the current year.

Insider Transactions at Leonardo DRS

In other Leonardo DRS news, Director Reuben Jeffery III purchased 25,000 shares of Leonardo DRS stock in a transaction that occurred on Tuesday, May 19th. The stock was bought at an average price of $42.77 per share, with a total value of $1,069,250.00. Following the acquisition, the director owned 25,000 shares of the company’s stock, valued at $1,069,250. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Michael Dippold sold 8,318 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $46.48, for a total value of $386,620.64. Following the transaction, the chief financial officer owned 55,460 shares in the company, valued at $2,577,780.80. This represents a 13.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 65,364 shares of company stock worth $2,994,785 over the last quarter. Company insiders own 0.25% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in DRS. Norges Bank acquired a new position in Leonardo DRS during the fourth quarter worth $37,481,000. Stephens Investment Management Group LLC increased its stake in shares of Leonardo DRS by 107.6% during the first quarter. Stephens Investment Management Group LLC now owns 2,118,331 shares of the company’s stock worth $94,308,000 after purchasing an additional 1,098,108 shares in the last quarter. Millennium Management LLC increased its stake in shares of Leonardo DRS by 152.1% during the third quarter. Millennium Management LLC now owns 1,776,185 shares of the company’s stock worth $80,639,000 after purchasing an additional 1,071,708 shares in the last quarter. AQR Capital Management LLC raised its position in shares of Leonardo DRS by 528.6% during the 3rd quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company’s stock worth $56,000,000 after purchasing an additional 1,070,870 shares during the last quarter. Finally, UBS Group AG raised its position in shares of Leonardo DRS by 566.2% during the 3rd quarter. UBS Group AG now owns 711,588 shares of the company’s stock worth $32,306,000 after purchasing an additional 604,783 shares during the last quarter. Hedge funds and other institutional investors own 18.76% of the company’s stock.

Trending Headlines about Leonardo DRS

Here are the key news stories impacting Leonardo DRS this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Adjusted EPS was $0.35 versus the $0.27 consensus estimate, while revenue reached $913 million versus expectations of approximately $903 million. Revenue increased 10% year over year, and adjusted EBITDA rose 33% to $128 million. Leonardo DRS Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Demand and profitability improved materially. Net earnings climbed 59% to $86 million, adjusted EBITDA margin expanded to 14.0% from 11.6%, and bookings totaled $1.1 billion. Funded backlog reached a record $5.1 billion, up 17% year over year, providing greater visibility into future sales. Leonardo DRS Announces Second-Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 outlook. Adjusted EPS guidance increased to $1.34–$1.39 from $1.26–$1.30, and adjusted EBITDA guidance rose to $525 million–$540 million. Revenue guidance was maintained at $3.9 billion–$3.975 billion. Leonardo DRS Raises 2026 EPS Outlook
• Positive Sentiment: The $450 million Raft acquisition could strengthen long-term growth. Raft adds capabilities in multi-domain artificial intelligence, data fusion and mission software, areas that could broaden DRS’s defense technology offering. The company also declared a quarterly dividend of $0.09 per share, payable August 27 to shareholders of record August 13. Leonardo DRS Signs Agreement to Acquire Raft
• Neutral Sentiment: Investors will weigh acquisition execution and valuation. The updated guidance excludes Raft, so the deal’s eventual contribution is not yet reflected in the outlook. Integration costs, financing needs and the ability to capture expected strategic benefits remain important considerations for a stock trading at a relatively high earnings multiple.

Leonardo DRS Company Profile

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.