Leonardo DRS gains as BofA raises PT on $3 bln DoD contract

Leonardo DRS

20/11/2023 15:43

** Defense tech firm Leonardo DRS'  DRS.O  shares rise 2.4%
to $19.01
    ** BofA raises PT on company's shares to $22 from $20
    ** $3 bln Department of Defense contract awarded to company
after end of Q3 to supply electric power and propulsion systems
for seven Columbia-class submarines
    ** Brokerage says contract only further de-risks the
Columbia-class program production ramp
    ** Leonardo DRS' parent company Leonardo SpA  LDOF.MI 
announced last week it sold 18 mln DRS shares in offering priced
at $17.75, cutting stake by about 7% to roughly 73%
    ** "We believe the reduction of Leonardo SpA's stake could
be a catalyst for further liquidity, which could make shares
more attractive for institutional investors seeking to build up
positions" - BofA
    ** Brokerage reiterates "buy" rating, new PT represents ~19%
upside to Leonardo DRS' last close of $18.56
    ** 3 of 5 brokerages rate the stock "buy" and 2
"strong-buy"; median PT $22 - LSEG
    ** As of Friday's close, stock up 48% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))