What Happened?
Shares of aerospace and defense company Leonardo DRS (NASDAQ: DRS) jumped 7.5% in the morning session after a Wells Fargo analyst maintained a Buy rating on the stock with a price target of $45 per share. This positive view was echoed by broader sentiment from the analyst community. In the three months prior, all six top analysts who covered the stock had rated it a Buy. Taken together, their 12-month price targets implied a potential upside of about 40.24%.
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What Is The Market Telling Us
Leonardo DRS’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock dropped 5% on the news that the company reported strong third-quarter results that beat expectations but provided a mixed outlook for the full year. The aerospace and defense firm's sales grew 18.2% year on year to $960 million, and its adjusted earnings per share of $0.29 also topped analyst estimates. Despite these strong figures and a slightly increased full-year revenue forecast, the company's guidance for full-year EBITDA (a measure of profit) came in at a midpoint of $445 million, which was just below what analysts had projected. This slight miss on the profit outlook appeared to be the key point of concern for investors, overshadowing the otherwise positive headline numbers.
Leonardo DRS is up 15.6% since the beginning of the year, but at $40.22 per share, it is still trading 17% below its 52-week high of $48.44 from July 2025.
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