Jefferies analyst Sheila Kahyaoglu raised her price target for Leidos to $80 from $75 following the company's Q4 results. The shares are "compelling" given 3%-4% sales growth, coupled with margin expansion, leading to 10% annual earnings growth, Kahyaoglu tells investors in a post-earnings research note. She keeps a Buy rating on Leidos.

Leidos was recently awarded a follow-on prime contract to provide the U.S. Army with technology-enabled services, including hardware sustainment, modernization, refresher training, and logistics support. The Responsive Strategic Sourcing for Services, indefinite delivery/indefinite quantity task order, has a base period of 11 months, and a maximum value of $267M, if all four one-year options are exercised. Under the task order, Leidos experts in Command, Control, Communication, Computers, Cyber, Intelligence, Surveillance, & Reconnaissance will assess Army hardware capabilities against performance parameters, build out hardware configurations, and implement upgrades. Leidos will also help to coordinate equipment warehousing, shipping, and warranty repair.