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Fly News Breaks for March 2, 2020
Mar 2, 2020 | 07:19 EDT
As previously reported, Stifel analyst Joseph DeNardi upgraded Leidos to Buy from Hold with a $130 price target. With shares of Leidos down about 20% from their high, with a significant portion of that related to the coronavirus selloff, he sees the stock having reached an attractive entry point given that the company has little near-term and no medium/long-term revenue risk from COVID-19, DeNardi tells investors. In fact, the company's positioning within the government healthcare industry could make it a net-beneficiary of the outbreak, DeNardi added. He also suspects some part of Leidos' recent underperformance relates to its expected leverage post the L-3 Security closing, but he sees this as an over-reaction given the strong cash generation of the business, the analyst added.