In a report released today, Sheila Kahyaoglu from Jefferies maintained a Hold rating on Science Applications (SAIC – Research Report), with a price target of $130.00.
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Sheila Kahyaoglu’s rating is based on several factors impacting Science Applications International Corporation (SAIC). The company’s earnings per share (EPS) for the upcoming fiscal quarter are estimated to be below consensus expectations, indicating potential challenges in meeting market forecasts. Additionally, the company’s revenue growth is expected to remain flat, which is below the anticipated growth rate, suggesting a slower-than-expected business trajectory.
Another factor influencing the Hold rating is the limited impact of the Department of Government Efficiency (DOGE) on SAIC’s revenues, which could face pressure from federal civilian agency funding cuts. Moreover, the company’s organic growth is projected to slow down due to recompete losses and program transitions, which may not be fully offset by new contracts. Despite trading at a significant discount to its peers, the lack of a clear catalyst for re-rating and uncertainties around near-term contract growth contribute to the cautious outlook.