Science Applications (SAIC – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Gautam Khanna from TD Cowen maintained a Hold rating on the stock and has a $130.00 price target.
Gautam Khanna has given his Hold rating due to a combination of factors related to Science Applications’ recent performance and future outlook. The company’s latest quarterly results and commentary were more optimistic than anticipated, suggesting that potential risks from the Department of Government Expenditure (DOGE) might be overstated. Although the negative impact from DOGE has been minimal so far, it is still early to dismiss these risks entirely, as contract award timelines could be extended.
Despite these challenges, Science Applications has maintained a strong contract award target for the first half of the year, supported by a significant amount of outstanding bids. The company is also exploring changes in payment terms that could potentially improve margins. However, there are concerns about potential sales pressures and the impact of non-recurring high-margin sales from the previous quarter. Overall, while there are positive indicators, uncertainties remain, leading to the Hold rating.
In another report released today, Truist Financial also maintained a Hold rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is neutral on the stock.