Leonardo DRS, Inc. (NASDAQ:DRS) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts maintain a moderately bullish view: Nine firms rate Leonardo DRS a consensus “Moderate Buy,” with an average 12-month price target of $51.50 versus the stock’s $36.92 opening price.
• Quarterly results exceeded expectations: Leonardo DRS reported $0.46 in EPS and $1.07 billion in revenue, surpassing estimates and delivering 11% year-over-year revenue growth. The company also declared a quarterly dividend of $0.09 per share.
• Defense-program opportunities support growth, but risks remain: DRS was selected for a U.S. Army high-energy laser program and may support an additional Army sensor initiative, though contract values and revenue impacts were not disclosed. The stock’s weak technical trend and a recent CFO share sale remain potential concerns.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the nine ratings firms that are presently covering the firm, MarketBeat reports. Three research analysts have rated the stock with a hold rating, four have given a buy rating and two have given a strong buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $51.50.

Several brokerages recently issued reports on DRS. Oppenheimer initiated coverage on shares of Leonardo DRS in a report on Thursday, October 22nd. They issued an "outperform" rating and a $45.00 price objective on the stock. JPMorgan Chase & Co. increased their target price on shares of Leonardo DRS from $48.00 to $53.00 and gave the stock a "neutral" rating in a research note on Friday, July 31st. BTIG Research reiterated a "buy" rating and set a $50.00 price target on shares of Leonardo DRS in a research report on Monday. Guggenheim assumed coverage on shares of Leonardo DRS in a research report on Monday, September 14th. They set a "buy" rating and a $51.00 price target for the company. Finally, Morgan Stanley boosted their price target on shares of Leonardo DRS from $44.00 to $45.00 and gave the company an "equal weight" rating in a research note on Monday.

Leonardo DRS Stock Performance

NASDAQ:DRS opened at $36.92 on Tuesday. The company's 50-day moving average is $36.62 and its two-hundred day moving average is $42.16. Leonardo DRS has a 1-year low of $32.43 and a 1-year high of $50.59. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.92 and a quick ratio of 1.56. The firm has a market capitalization of $9.85 billion, a price-to-earnings ratio of 27.15, a PEG ratio of 2.14 and a beta of 0.32.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $0.46 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.35 by $0.11. Leonardo DRS had a net margin of 8.52% and a return on equity of 12.97%. The business had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the firm earned $0.29 EPS. The business's revenue was up 11.0% compared to the same quarter last year. Analysts forecast that Leonardo DRS will post 1.47 EPS for the current year.

Leonardo DRS Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Thursday, November 12th will be issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.0%. The ex-dividend date is Thursday, November 12th. Leonardo DRS's dividend payout ratio (DPR) is 26.47%.

Leonardo DRS News Summary

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

• Positive Sentiment: Selected for U.S. Army high-energy laser production: AeroVironment selected Leonardo DRS to provide rugged vehicle-integration expertise, including power and thermal-management work, for the Army’s Enduring-High Energy Laser program. The award expands DRS’s position in directed-energy and advanced defense systems. Leonardo DRS Selected by AV for U.S. Army's Enduring-High Energy Laser Production Program
• Positive Sentiment: Additional Army sensor opportunity: DRS is expected to demonstrate thermal-camera cores for the Army’s DUTCH initiative, potentially supporting future demand for its infrared sensing and imaging products. Leonardo DRS to demonstrate thermal camera cores for Army DUTCH initiative
• Positive Sentiment: Analysts remain constructive: BTIG reaffirmed its buy rating with a $50 price target, while Morgan Stanley raised its target to $45, although it maintained an equal-weight rating. BTIG Research rating
• Positive Sentiment: Recent operating momentum: Leonardo DRS’s latest quarterly results exceeded analyst expectations for both earnings and revenue, with revenue increasing 11% year over year. Leonardo DRS 2026 Q3 Results
• Neutral Sentiment: The laser-program announcements did not disclose contract value, production volume, or a material revenue contribution, so investors may be waiting for more detail before revising estimates.
• Negative Sentiment: The stock’s technical backdrop remains weak, with its 200-day moving average well above its 50-day average. That weakness may be offsetting the positive defense-program news and analyst targets.

Insiders Place Their Bets

In other Leonardo DRS news, CFO Michael Dippold sold 20,317 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $37.18, for a total value of $755,386.06. Following the sale, the chief financial officer owned 35,143 shares of the company's stock, valued at $1,306,616.74. The trade was a 36.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.25% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Covestor Ltd lifted its holdings in Leonardo DRS by 14.7% during the 3rd quarter. Covestor Ltd now owns 3,249 shares of the company's stock worth $119,000 after buying an additional 416 shares in the last quarter. IFP Advisors Inc grew its stake in shares of Leonardo DRS by 26.9% in the second quarter. IFP Advisors Inc now owns 2,030 shares of the company's stock worth $87,000 after acquiring an additional 430 shares in the last quarter. Amundi grew its stake in shares of Leonardo DRS by 4.4% in the first quarter. Amundi now owns 12,124 shares of the company's stock worth $540,000 after acquiring an additional 507 shares in the last quarter. Essential Partners LLC increased its position in shares of Leonardo DRS by 68.7% during the first quarter. Essential Partners LLC now owns 1,302 shares of the company's stock worth $58,000 after acquiring an additional 530 shares during the period. Finally, EverSource Wealth Advisors LLC increased its position in shares of Leonardo DRS by 51.0% during the first quarter. EverSource Wealth Advisors LLC now owns 1,798 shares of the company's stock worth $80,000 after acquiring an additional 607 shares during the period. 18.76% of the stock is currently owned by hedge funds and other institutional investors.

About Leonardo DRS

Leonardo DRS, Inc is a defense technology company that develops and supplies advanced products and systems for the U.S. military and government customers, as well as allied nations. The company operates as a subsidiary of Leonardo S.p.A. and focuses on technologies used in land, sea, air and space-related defense applications.

Its offerings include sensing and surveillance systems, electro-optical and infrared technologies, radar and electronic warfare products, network computing and communications systems, counter-uncrewed aircraft systems, force protection equipment, and naval power and propulsion systems.

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