Leidos Downgraded to Neutral by Baird Amid Contract Booking Slowdown

Baird analyst Jeffrey Meuler upgraded Fair Isaac Corporation's stock from Neutral to Outperform, lowering the price target to $1,900 due to the recent share price pullback and perceived reduced regulatory risk, highlighting strong financial health and impressive profit margins. Meuler emphasized Fair Isaac's robust market position, financial strength, and potential benefits from an anticipated recovery in mortgage volumes. Conversely, Leidos Holdings (NYSE: LDOS) was downgraded by Baird from Outperform to Neutral, with the price target reduced to $163 amid a softening government contracts environment and a slowdown in contract bookings expected to persist through 2025. Despite this downgrade, the consensus among analysts remains moderately positive, with an average price target around $173 and an overall Outperform rating, reflecting mixed sentiments about the company's near-term outlook. Key concerns for Leidos include significant contract cancellations and reduced government spending impacting backlog, leading to a cautious stance by analysts. These contrasting analyst moves reflect sector-specific challenges and opportunities, with Fair Isaac benefiting from a favorable valuation and market position, while Leidos faces headwinds from government sector uncertainties.