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