TD Cowen analyst Gautam Khanna has maintained their neutral stance on SAIC stock, giving a Hold rating today.
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Gautam Khanna has given his Hold rating due to a combination of factors impacting Science Applications’ financial outlook. The company’s recent quarterly performance was less than stellar, with a reduction in future sales and EBITDA guidance for fiscal years 2026 and 2027. This adjustment was necessary due to slower-than-expected contract awards and on-contract growth, which did not meet management’s previous expectations.
Despite these challenges, there are some positive aspects that influenced the Hold rating. The company has a substantial amount of outstanding bids, and the risk associated with contract recompetes in fiscal year 2027 appears manageable. Additionally, changes in tax laws have improved cash flow projections, which has led to an increase in free cash flow guidance for the upcoming years. These elements, combined with ongoing cost reduction initiatives, provide a balanced view, justifying the Hold rating.
In another report released today, Truist Financial also reiterated a Hold rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SAIC in relation to earlier this year.