Leidos rises after Jefferies lifts rating on Q2 results

** Defense contractor Leidos' shares LDOS.N rise 1.2% to $174.99 premarket

** Jefferies upgrades rating to "buy" from "hold", on company's "healthy dose of earnings power"

** Cites LDOS' risk removal on Health & Civil segment margins, potential benefit from Department of Defense sales exposure, AI benefits and upside on Defense Systems segment business

** Raises PT to $205 from $185, representing a 10.8% upside to the stock's last close

** Says improved sentiment on the H2 bidding environment, established program ramps, favorable positioning on U.S. administration's priorities could offset DOGE headwind

** Five brokerages rate the stock "strong buy", four "buy" and nine "hold"; their median PT is $180 - LSEG-compiled data

** As of last close, stock had risen 20% YTD