JPMorgan Chase & Co. Issues Positive Forecast for Leonardo DRS (NASDAQ:DRS) Stock Price

Key Points

• JPMorgan raised Leonardo DRS’s price target to $53 from $48 while maintaining a neutral rating, implying 16.42% upside from the prior close. The broader analyst consensus is “Moderate Buy” with a $53.60 target.
• Leonardo DRS exceeded quarterly expectations, reporting $0.35 in EPS versus the $0.27 consensus and $913 million in revenue, up 10% year over year. Management also raised 2026 adjusted EPS guidance to $1.34–$1.39.
• The company’s growth outlook is supported by strong demand and backlog: bookings reached $1.1 billion and funded backlog rose 17% to a record $5.1 billion. However, investors must assess execution of the planned $450 million Raft acquisition and the stock’s relatively high valuation.

Leonardo DRS (NASDAQ:DRS - Get Free Report) had its price objective boosted by JPMorgan Chase & Co. from $48.00 to $53.00 in a research note issued on Friday,Benzinga reports. The firm presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 16.42% from the company's previous close.

Several other research analysts have also recently weighed in on the stock. Canaccord Genuity Group boosted their price objective on shares of Leonardo DRS from $52.00 to $54.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Truist Financial raised shares of Leonardo DRS to a "strong-buy" rating in a research report on Friday, May 1st. Wall Street Zen raised Leonardo DRS from a "hold" rating to a "buy" rating in a report on Sunday, May 10th. Finally, Weiss Ratings upgraded Leonardo DRS from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Leonardo DRS presently has a consensus rating of "Moderate Buy" and a consensus price target of $53.60.

Leonardo DRS Stock Down 0.2%

Leonardo DRS stock traded down $0.10 during trading hours on Friday, hitting $45.52. 304,821 shares of the stock traded hands, compared to its average volume of 1,122,493. The firm's 50-day moving average price is $45.65 and its two-hundred day moving average price is $43.90. 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 company 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. Leonardo DRS has a one year low of $32.43 and a one year high of $50.59.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.08. The company had revenue of $913.00 million for the quarter, compared to analysts' expectations of $903.27 million. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. Leonardo DRS's revenue was up 10.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.23 EPS. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. On average, research analysts forecast that Leonardo DRS will post 1.3 EPS for the current year.

Insider Buying and Selling

In other Leonardo DRS news, EVP Jason Rinsky sold 3,865 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $45.37, for a total value of $175,355.05. Following the sale, the executive vice president owned 27,445 shares in the company, valued at $1,245,179.65. This trade represents a 12.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sally Wallace sold 1,300 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $50.00, for a total transaction of $65,000.00. Following the completion of the transaction, the executive vice president directly owned 57,053 shares in the company, valued at $2,852,650. This represents a 2.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 65,364 shares of company stock valued at $2,994,785 in the last three months. Corporate insiders own 0.25% of the company's stock.

Institutional Trading of Leonardo DRS

Several institutional investors and hedge funds have recently made changes to their positions in DRS. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Leonardo DRS by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 43,817 shares of the company's stock worth $1,441,000 after purchasing an additional 1,922 shares during the last quarter. Millennium Management LLC raised its holdings in Leonardo DRS by 29.0% in the first quarter. Millennium Management LLC now owns 369,749 shares of the company's stock worth $12,157,000 after purchasing an additional 83,077 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Leonardo DRS by 9.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 148,474 shares of the company's stock worth $4,882,000 after purchasing an additional 12,712 shares in the last quarter. Intech Investment Management LLC lifted its position in shares of Leonardo DRS by 18.6% during the first quarter. Intech Investment Management LLC now owns 48,560 shares of the company's stock valued at $1,597,000 after buying an additional 7,625 shares during the last quarter. Finally, Acadian Asset Management LLC bought a new stake in shares of Leonardo DRS in the 1st quarter valued at about $225,000. 18.76% of the stock is currently owned by institutional investors.

Leonardo DRS News Summary

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.

About Leonardo DRS

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.

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