Oppenheimer Initiates Leonardo DRS (DRS) at Outperform
Key Points
- Oppenheimer initiated coverage on Leonardo DRS, Inc. (NASDAQ:DRS) with an Outperform rating and a $45.00 price target on October 22, 2026.
- Oppenheimer's $45 price target implies 32.28% upside from Leonardo DRS, Inc.'s ($DRS) current $34.02 share price.
- The defense contractor recently posted trailing-twelve-month revenue of $3.78 billion and net income margins of 8.5%, with upcoming earnings expected on October 29, 2026.
- Institutional investors adjustments include AQR Capital Management growing its holdings to 4.43 million shares valued at about $150.7 million.
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On October 22, 2026, Oppenheimer initiated coverage on Leonardo DRS, Inc. (NASDAQ:DRS) with an Outperform rating and set a price target of $45.00. The research note highlights the firm's forward-looking perspective on the defense contractor's technological capabilities across its sensing and computing segments. Oppenheimer did not previously cover the stock, marking this as a fresh start for the firm's outlook on the company.
DRS
Leonardo DRS, Inc.
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Oppenheimer's Call on Leonardo DRS
On October 22, 2026, Oppenheimer issued an Outperform rating on Leonardo DRS alongside a $45.00 price target. Because this was an initiation of coverage, the firm had no prior price target on the stock. The rating reflects the analyst's view on the company's position in the defense electronic products market ahead of its upcoming financial reports.
Other Institutional Activity in Leonardo DRS
Institutional investors adjusted their positions in Leonardo DRS ahead of the recent updates. AQR Capital Management, LLC grew its holdings by 1,355,599 shares, ending with 4,430,913 shares worth about $150.7 million. First Trust Advisors LP added 453,657 shares to hold 2,681,836 shares valued at roughly $91.2 million. Voya Investment Management LLC reduced its stake by 636,124 shares, finishing with 2,519,252 shares worth about $85.7 million. Stephens Investment Management Group LLC grew its holdings by 283,636 shares to hold 2,401,901 shares valued at approximately $81.7 million.
Leonardo DRS, Inc. Stock Up 0.2%
Leonardo DRS recently traded around $34.02 as of October 22, 2026. The stock sits below its 50-day moving average of $37.80 and below its 200-day moving average of $42.29. The shares trade well below their 52-week high of $50.59 while remaining above their 52-week low of $32.43.
$DRS price target
Leonardo DRS, Inc. daily closes and this analyst's $45 target. Not advice.
Recent Earnings
Leonardo DRS reported trailing-twelve-month revenue of $3.8 billion and earnings of $1.19 per share. The company achieved a net margin of 8.5% and a return on equity of 11.9%, alongside year-over-year revenue growth of 10.1%. The company's next earnings report is scheduled for October 29, 2026.
Dividend
Leonardo DRS pays an annual dividend rate of $0.36 per share, which translates to a dividend yield of 1.06%. The payout ratio stands at 30.2%, indicating the portion of earnings allocated to dividend payments.
Insider Buying and Selling at Leonardo DRS, Inc.
Company insiders completed several transactions in recent months. Officer Jason Rinsky sold 3,865 shares on July 7, 2026, at an average price of $45.37 for a total of $175,355, and later sold 3,864 shares on August 4, 2026, at an average price of $45.81 totaling $177,010. Chief Financial Officer Michael Dippold sold 20,317 shares on September 2, 2026, at an average price of $37.18 worth $755,386. General Counsel Mark A. Dorfman sold 7,471 shares on September 4, 2026, at an average price of $37.01 for a total of $276,502.
Analysts Set New Price Targets
Analyst activity surrounding the company includes several recent updates from major Wall Street firms. JP Morgan maintained a Neutral rating on July 31, 2026, while raising its price target from $48.00 to $53.00. Guggenheim initiated coverage with a Buy rating and a $51.00 price target on September 15, 2026. Morgan Stanley maintained an Equal-Weight rating on October 19, 2026, while lowering its price target from $47.00 to $44.00. Across the broader analyst community, the stock carries a consensus recommendation of strong buy with a mean price target of $53.18 based on 11 analyst opinions.
About Leonardo DRS
Leonardo DRS, Inc. provides defense electronic products, systems, and military support services. Operating out of Arlington, Virginia, the company serves global clients through its Advanced Sensing and Computing and Integrated Mission Systems segments. The firm works extensively with defense agencies to supply advanced mission-critical technologies.
Bottom Line
Oppenheimer's new Outperform rating brings fresh attention to Leonardo DRS as the company approaches its upcoming earnings report on October 29, 2026. Investors will monitor whether upcoming financial results align with the targets set by Wall Street analysts.
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Source: Oppenheimer's rating change on $DRS (Oct 22, 2026). Written by software, not financial advice. How we make alerts