Update shared on 31 Oct 2025
Fair value Decreased 2.04%Narrative Update on Leonardo DRS Analyst Price Target
Analysts have reduced their price target for Leonardo DRS from $49.00 to $48.00. This change is attributed to updates in revenue growth and profit margin expectations, along with a slightly higher discount rate.
What's in the News
- William J. (Bill) Lynn will retire as CEO after fourteen years. John Baylouny is set to assume the CEO position on January 1, 2026 (Executive Changes).
- Leonardo DRS is actively seeking new M&A opportunities as part of its balanced capital allocation strategy, including recent and upcoming investments (Seeking Acquisitions/Investments).
- The company increased its earnings guidance for 2025 and now expects revenue between $3,550 million and $3,600 million (Corporate Guidance; Raised).
- From July to September 2025, Leonardo DRS repurchased 247,558 shares for $10 million, completing the buyback of 600,728 shares valued at $23.29 million (Buyback Tranche Update).
- The company announced the launch of SAGEcore™, an AI-driven software platform for tactical platforms that advances real-time battlefield operations (Product-Related Announcements).
Valuation Changes
- Consensus Analyst Price Target: Lowered from $49 to $48, reflecting a slight decrease in expected fair value.
- Discount Rate: Increased modestly from 7.69% to 7.76%, indicating marginally higher risk assumptions.
- Revenue Growth: Decreased from 6.61% to 5.68%, signaling more conservative growth projections.
- Net Profit Margin: Rose from 8.47% to 9.82%, showing expectations for improved profitability.
- Future P/E: Dropped from 47.24x to 39.36x, suggesting reduced valuation multiples on anticipated earnings.
Disclaimer
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