Wells Fargo cuts Leidos PT on expectation of lower federal spending
** Wells Fargo lowers PT of Pentagon IT services provider Leidos Holdings LDOS.N to $205 from $230; still represents a ~25% upside to stock's last close
** "We lower our price targets on Fed IT names as we see pressure on federal spending," says Wells Fargo
** Says a likely aggressive push to reduce spending in Donald Trump's second term could make it harder for services spending to grow
** "LDOS' relative valuation vs Fed IT stocks is below historical levels, and we expect the gap to close with LDOS' growth prospects at least as good as peers" - Wells Fargo
** Brokerage expects investor sentiment on LDOS to improve as focus turns to strong 2024 sales, FCF and margin expansion
** Eight brokerages rate the stock "strong buy", five "buy" and three "hold"; median PT is $214 - LSEG data
** As of last close, stock had risen 51.2% YTD
Reporting by Aatreyee Dasgupta
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