
DRS Stock Forecast & Price Target
DRS Analyst Ratings
Bulls say
Leonardo DRS Inc is experiencing significant revenue growth, with an expected revenue potential of $3.635 billion by 2026, surpassing prior estimates and driven by key programs such as the Columbia class, M-SHORAD, and M-LIDS. The company has demonstrated strong performance in its Advanced Sensing and Computing segment, reporting a 22% increase in sales to $492 million and improved EBITDA margins to 15.5%, exceeding consensus expectations. Additionally, the overall consolidated adjusted EBITDA margin rose to 10.9%, reflecting effective operational execution despite challenges in the Integrated Mission Systems segment, positioning Leonardo DRS favorably for future growth.
Bears say
Leonardo DRS's stock outlook appears negative primarily due to declining margins and disappointing efficiency metrics. The Integrated Mission Systems segment's adjusted EBITDA margins fell by 200 basis points year-over-year to 11.2%, significantly below market expectations of 13.6%, while corporate adjusted EBITDA margins also decreased, indicating pressure on profitability. Furthermore, there are forecasts of reduced free cash flow conversion and lower EBITDA margin guidance for 2024, compounded by specific program challenges and anticipated growth deceleration following the current supply chain benefits.
This aggregate rating is based on analysts' research of Leonardo DRS Inc and is not a guaranteed prediction by Public.com or investment advice.
DRS Analyst Forecast & Price Prediction
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