Leonardo DRS Combines Revenue Visibility With Growth Exposure of Emerging Defense Firms, Oppenheimer Says

11:54 AM EDT, 10/22/2026 (MT Newswires) -- Leonardo DRS (DRS) is a differentiated defense company that combines the revenue visibility and profitability of a mature defense supplier with growth exposure typical of emerging defense technology firms, Oppenheimer said in a Thursday note. The technologies across the company's portfolio of mission-critical franchises are embedded on long-lived platforms, providing recurring production and sustainment opportunities, analysts wrote. The company's installed-base exposure gives it greater revenue visibility and lower execution risk than most emerging defense tech firms, according to Oppenheimer. The brokerage said it expects 2026 adjusted EPS of $1.46 on revenue of $3.96 billion. For 2027, it expects adjusted EPS of $1.46 on revenue of $4.33 billion. Leonardo supplies critical components rather than serving as the ultimate platform integrator, which is a structural advantage, as it can participate across platforms while avoiding most of the development risk and fixed-cost burden of priming an entire platform, according to the note. The brokerage said it initiated coverage of the stock with an outperform rating and a price target of $45 per share. Price: 33.45, Change: -0.49, Percent Change: -1.44