Leonardo DRS (NASDAQ:DRS) Price Target Raised to $53.00 at JPMorgan Chase & Co.

Leonardo DRS (NASDAQ:DRS) had its target price upped by JPMorgan Chase & Co. from $48.00 to $53.00 in a report released on Friday,Benzinga reports. The firm currently has a neutral rating on the stock.

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

Leonardo DRS Stock Performance

Shares of NASDAQ DRS opened at $46.05 on Friday. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05. The firm’s 50-day moving average price is $45.67 and its two-hundred day moving average price is $43.91. Leonardo DRS has a 52-week low of $32.43 and a 52-week high of $50.59. The stock has a market capitalization of $12.28 billion, a P/E ratio of 38.70, a P/E/G ratio of 3.29 and a beta of 0.36.

Leonardo DRS (NASDAQ:DRS) last posted its earnings results on Thursday, July 30th. The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.27 by $0.08. The company had revenue of $913.00 million during the quarter, compared to analyst estimates of $903.27 million. Leonardo DRS had a return on equity of 13.07% and a net margin of 8.52%.The business’s revenue was up 10.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.23 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. As a group, sell-side analysts forecast that Leonardo DRS will post 1.3 earnings per share for the current year.

Leonardo DRS Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th will be given a dividend of $0.09 per share. The ex-dividend date is Thursday, August 13th. This represents a $0.36 annualized dividend and a dividend yield of 0.8%. Leonardo DRS’s payout ratio is currently 30.25%.

Insiders Place Their Bets

In related news, CEO John Baylouny sold 36,471 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $45.67, for a total value of $1,665,630.57. Following the sale, the chief executive officer directly owned 122,435 shares in the company, valued at $5,591,606.45. This trade represents a 22.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 8,318 shares of Leonardo DRS stock in a transaction on Monday, June 8th. The shares were sold at an average price of $46.48, for a total value of $386,620.64. Following the sale, the chief financial officer directly owned 55,460 shares in the company, valued at $2,577,780.80. The trade was a 13.04% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 65,364 shares of company stock worth $2,994,785. 0.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Tema ETFs LLC lifted its holdings in Leonardo DRS by 140.0% in the second quarter. Tema ETFs LLC now owns 1,776 shares of the company’s stock worth $76,000 after purchasing an additional 1,036 shares during the period. GAMMA Investing LLC increased its stake in Leonardo DRS by 49.8% during the 2nd quarter. GAMMA Investing LLC now owns 1,904 shares of the company’s stock valued at $81,000 after buying an additional 633 shares during the period. Militia Capital Management LLC acquired a new position in Leonardo DRS during the 1st quarter valued at about $2,328,000. Parallel Advisors LLC raised its position in shares of Leonardo DRS by 1,701.4% during the 1st quarter. Parallel Advisors LLC now owns 1,261 shares of the company’s stock worth $56,000 after buying an additional 1,191 shares in the last quarter. Finally, Ruggaard & Associates LLC bought a new stake in shares of Leonardo DRS during the 1st quarter worth about $211,000. 18.76% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Leonardo DRS

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

• Positive Sentiment: Q2 earnings beat expectations: Adjusted EPS was $0.35 versus the $0.27 analyst consensus, while revenue rose 10% year over year to $913 million, exceeding estimates of $903.3 million. Net earnings increased 59% to $86 million, and adjusted EBITDA climbed 33% to $128 million. Leonardo DRS Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Guidance was raised: Leonardo DRS increased its 2026 adjusted EPS outlook to $1.34-$1.39 from $1.26-$1.30, above the $1.30 consensus estimate. Adjusted EBITDA guidance was also raised to $525 million-$540 million, although revenue guidance was unchanged at $3.9 billion-$4.0 billion. Leonardo DRS 2026 Guidance and Raft Acquisition
• Positive Sentiment: Backlog and bookings support future growth: Quarterly bookings reached $1.1 billion, producing a 1.2x book-to-bill ratio, while funded backlog rose 17% year over year to a record $5.1 billion. Growth was led by tactical radar, infrared sensing, electric power and propulsion, and naval computing programs.
• Positive Sentiment: Raft acquisition expands software capabilities: DRS agreed to acquire Raft for $450 million, adding expertise in artificial intelligence, data fusion, and mission software. The deal could strengthen DRS’s position in multi-domain defense technology. Leonardo DRS Signs Agreement to Acquire Raft
• Neutral Sentiment: JPMorgan raised its price target to $53 from $48 but retained a Neutral rating. The higher target signals improved valuation potential, but the unchanged rating suggests limited conviction at the current valuation. Benzinga Price Target Update
• Negative Sentiment: Acquisition execution and funding remain risks: Raft is expected to require substantial capital, and the transaction faces closing, integration, regulatory, and potential debt-related risks. Management’s 2026 guidance excludes Raft’s contribution.

Leonardo DRS Company Profile

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.